EUR/USD continues to squeeze higher despite overbought daily studies as bulls climb further into rising channel to test above daily Bolli top at $1.3710 to an hourly high at $1.3726. Weekly studies may turn higher also and resistance is a little thin above $1.3700 and seen around $1.3742 – Oct 23 low. A break above could see rise to retest Oct 28 reversal high at $1.3832, however studies are near overbought and bears look to retest channel base at $1.3642
R 4: $1.3832 High Oct 28
R 3: $1.3812 Weekly Bollinger band top
R 2: $1.3793 High Oct 23
R 1: $1.3742 Low Oct 23
Latest price: $1.3702
S 1: $1.3681 Reversal high Apr 2007
S 2: $1.3637/42 Daily Ichimoku top, Channel base
S 3: $1.3598 High Oct 14
S 4: $1.3572 55-day moving average.
GBP/USD still holds above initial support, seen at $1.6301/04, the Dec 5 low and 23.6% of $1.5855-1.6443. Studies are overbought and mostly bearish and bears will aim to break below this level to test support just above $1.6200 – the 21-DMA and 38.2% are at $1.6211/18. Bulls will aim to retest the Nov 7 support line at $1.6399 but failure here could start a slide to the July support line seen around $1.6075 and below here targets the Nov 12 low at $1.5855.
R 4: $1.6491/96 Daily Bolli band top, High June 2011
R 3: $1.6443 High Dec 2
R 2: $1.6399/04 Nov 13 support line, High Dec 4
R 1: $1.6361 5-day moving average
Latest price: $1.6348
S 1: $1.6301/04 Low Dec 5, 23.6% of $1.5855-1.6443
S 2: $1.6260 High Oct 1
S 3: $1.6211/18 21-DMA, 38.2% of $1.5855-1.6443
S 4: $1.6200 High Nov 21
USD/JPY bursts back into rising channel to trade just below Dec 3 high at Y103.38 which bulls surely aim to retest today. Weekly studies stretch further into overbought territory and a break above Y103.38 targets a test of the Y103.74 reversal high from May 22. However, failure to retest Y103.38 would add risk lower once more – bears would need to break below the lows of Dec 5 and 6 at Y101.63/64, respectively, but ahead of her is daily Tenkan at Y102.28.
R 4: Y104.29 3% 21-day MA envelope top
R 3: Y104.10 Rising channel top
R 2: Y103.78 Daily Bolli top
R 1: Y103.38 High Dec 3
Latest price: Y102.99
S 1: Y102.28 Daily Tenkan line
S 2: Y102.02 23.6% of Y97.62-103.38
S 3: Y101.53/64 Reversal high Jul 8, Low Dec 6
S 4: Y101.18/25 38.2% of Y97.62-103.38, 21-DMA
EUR/JPY storms higher to break above Y140.00 level and leave a new recent high at Y141.55 which is also initial resistance. Daily studies are overbought but trade sideways while weekly studies also look O/B. A break above Y141.55 threatens daily Bolli top at Y142.03 and a close above rising channel could start a measured move to Y143.24. However, overbought studies caution bulls and bears aim to back below Y140.00 level to test daily Tenkan at Y139.42.
R 4: Y143.24 Potential measured move target
R 3: Y142.65 4% 21-DMA envelope top
R 2: Y142.03 Daily Bollinger band top
R 1: Y141.55 Hourly high
Latest price: Y141.14
S 1: Y140.69 Hourly low
S 2: Y140.03 High Dec 3
S 3: Y139.42/43 Daily Tenkan, Feb 2005 high
S 4: Y139.11 23.6% of Y131.22-141.55
