EUR/USD slid to bounce from support just above $1.3700 and left a lower high and low. Bears look to retest while daily studies look overbought and a break below $1.3700 targets a test of 23.6% of $1.3296-1.3811 at $1.3689, just above the rising channel base at $1.3683. However, weekly/monthly studies remain in an uptrend which would encourage bulls to retest the highs above $1.3800 – the Oct 28 high at $1.3832 is still key resistance.
R 4: $1.3852/66 High Jul 2007, Monthly Bolli band top
R 3: $1.3824/32 Daily Bolli top, High Oct 28
R 2: $1.3795/3803 High Dec 10, High Dec 12
R 1: $1.3769 High Dec 13
Latest price: $1.3754
S 1: $1.3704/09 High Oct 18, Low Dec 13
S 2: $1.3681/83 Reversal high Apr 2007, Rising channel base
S 3: $1.3614/20 38.2% of $1.3296-1.3811, 21-DMA
S 4: $1.3598 High Oct 14
GBP/USD declines to the 21-DMA now at $1.6292 – bears look to close below while daily studies decline. Support below seen at $1.6263, Friday’s low, and below here is the 38.2% of $1.5855-1.6466 at $1.6233. Further losses could see bears target the July support line at $1.6133, however, failure to move below Friday’s low could see bulls return and target a retest of the Dec 10 high at $1.6466. Ahead of here, initial resistance is at $1.6321 – the Dec 12 low.
R 4: $1.6428 38.2% of $2.1161-1.3503
R 3: $1.6401 Jan 2013 reversal high
R 2: $1.6354 5-day moving average
R 1: $1.6321 Low Dec 12
Latest price: $1.6304
S 1: $1.6260/63 High Oct 1, Low Dec 13
S 2: $1.6233 38.2% of $1.5855-1.6466
S 3: $1.6200 High Nov 21
S 4: $1.6154/61 55-DMA, 50.0% of $1.5855-1.6466
USD/JPY descends from the new high at Y103.92 as bears look to close below the support line from Nov 7 low – initial support now at Y102.43, the 23.6% of Y97.62-103.92, a break below here targets the 21-DMA at Y102.04. Studies are mainly overbought and a close around initial support would form a shooting-star reversal pattern. Below the 21-DMA, further support is around Y101.43/51 – the daily Kijun line and 38.2% level.
R 4: Y105.10 3% 21-day MA envelope top
R 3: Y104.08/09 2% 21-day MA envelope top, Daily Bolli top
R 2: Y103.92 High Dec 13
R 1: Y103.39 High Dec 10
Latest price: Y102.80
S 1: Y102.43 23.6% of Y97.62-103.92
S 2: Y101.98/102.04 Low Dec 3, 21-DMA
S 3: Y101.43/51 Daily Kijun, 38.2% of Y97.62-103.92
S 4: Y100.61/77 Sept 11 high, 50.0% of Y97.62-103.92
EUR/JPY descends from the new high at Y142.83 to trade back within the rising channel from Nov 8 low. Studies are all overbought and failure to retest the Dec 13 high at Y142.83 adds risk to the downside, the daily Tenkan line held the downside earlier in Dec and is key support at Y140.63. Below here is the 23.6% of Y131.22-142.83 at Y140.09. However, the pair remains in an uptrend while bulls hold above the Nov 2012 support line seen at Y134.85.
R 4: Y143.59 Daily Bollinger band top
R 3: Y143.16 3% 21-DMA envelope top
R 2: Y142.83 High Dec 13
R 1: Y142.17 High Dec 10
Latest price: Y141.43
S 1: Y140.92/99 Low Dec 11, 61.8% of Y169.96-94.12
S 2: Y140.63 Daily Tenkan line
S 3: Y140.20/32 Oct 2005 high, Channel base
S 4: Y140.03/09 High Dec 3, 23.6% of Y131.22-142.83
