EUR/USD: The break above the $1.3717 level that previously capped sees this level now noted as initial support and the euro-dollar heading towards the layers of resistance in the $1.3811-32 region. The 21 day upper Bollinger band is currently seen around the $1.3821 level and given that closes above a rarity any decent attempts higher may initially lack follow through if it tries to make headway above the upper Bolli.
R 4: $1.3832 2013 High Oct 25
R 3: $1.3821 21 day upper Bollinger band
R 2: $1.3811 Highs Dec 11 & Dec 18
R 1: $1.3769 High Dec 13
Latest price: $1.3739
S 1: $1.3717 Previous daily resistance now support
S 2: $1.3655/59 Low Dec 24, Nov 7 support line
S 3: $1.3617/18 55-DMA, 38.2% of $1.3296-1.3811
S 4: $1.3578 23.6% of $1.2755-1.3832
The move higher sees GBP/USD targeting a retest of the 2013 high with a close above the current 2013 high seeing focus ratchet higher to the Aug 2011 monthly high at $1.6618. A close back below the $1.6397 level is needed to relieve the immediate bullish focus while a close below the $1.6218 Dec 17 low is needed to end bullish hopes and see immediate focus shift to retests of the $1.6050 level. Daily tech studies have plenty of room to move topside.
R 4: $1.6618 Monthly high Aug 2011
R 3: $1.6591 Weekly Bollinger band top
R 2: $1.6484 2013 High Dec 18
R 1: $1.6455 Daily Bollinger band top
Latest price: $1.6438
S 1: $1.6397 Previous daily resistance now support
S 2: $1.6336 23.6% of $1.5855-1.6484
S 3: $1.6302/09 Reversal Highs May, Sep 2012
S 4: $1.6244 38.2% of $1.5855-1.6484
After repeated failures at the Y104.41 level the break to fresh 2013 highs for USD/JPY now sees the pair targeting the Y106.96 Sept 29 2008 high. The 21 day upper Bollinger band comes in around Y105.09 today and it should be noted that closes above are rare so caution should be shown as spikes above the upper Bolli may lack follow through. A close below the Y103.78 level is needed to shift focus lower and hint at a deeper correction.
R 4: Y106.96 High 29 Sept 2008
R 3: Y106.39 Rising daily channel top
R 2: Y105.82 3% 21-day MA envelope top
R 1: Y105.50 61.8% Fibonacci of Y124.14 to Y75.35
Latest price: Y104.78
S 1: Y104.41 Previous daily resistance now support
S 2: Y103.78 Low Dec 19 & 23
S 3: Y103.67 Daily Tenkan
S 4: Y103.37 21 day moving average
EUR/JPY: The strong move above Y142.90 that previously capped sees overall focus shift higher to tests of the 146.46-80 region which represents the rising daily channel top and Oct 3 2008 high. Initial support is now noted at the Y142.90 previous key resistance with the rising daily channel base now coming in above this level and a close below Y142.90 needed to ease the immediate bullish pressure. Note that closes above the 21 day upper Bollinger band are a rarity
R 4: Y146.80 High Oct 3 2008
R 3: Y146.46 Rising channel top
R 2: Y144.52 3% 21-DMA envelope top
R 1: Y144.39 Daily Bollinger band top
Latest price: Y143.99
S 1: Y143.26 Daily channel base
S 2: Y142.90 Previous daily resistance now support
S 3: Y142.45/58 Hourly support
S 4: Y142.26 Daily Tenkan line
