EUR/USD plummets through support levels to bounce from the 55-DMA and daily Bolli base yesterday – both now initial support at $1.3631/36, respectively. The long black candle appears to have reversed sentiment south as daily/weekly studies turn lower – another day of losses would confirm today’s sell-signals on 10-day and 10-week momentum study. Further support at $1.3594, the 50.0% level and below here is a July support line at $1.3551.
R 4: $1.3832 High Oct 28
R 3: $1.3797/3809 Rising channel base, Daily Bolli top
R 2: $1.3722 Nov 7 support line & 21-DMA
R 1: $1.3707 Low Dec 13
Latest price: $1.3649
S 1: $1.3631/36 55-DMA, Daily Bollinger band base
S 2: $1.3594/98 50.0% of $1.3296-1.3893, High Oct 14
S 3: $1.3551 Support line from Jul 9
S 4: $1.3524/37 61.8% of $1.3296-1.3893, 100-DMA
GBP/USD hits new high at $1.6603 but followed with a decline to the 23.6% of $1.5855-1.6603 which is now support at $1.6426. Bears look to break and close below here to challenge the July support line at $1.6295. Daily studies are lower while weekly studies continue to move sideways in overbought levels – downside risk mounts but the pair are still bullish while above the July support line; failure to the downside could see a retest of the $1.6600 level.
R 4: $1.6603 High Jan 2
R 3: $1.6559 Daily Bollinger band top
R 2: $1.6504 5-day moving average
R 1: $1.6484 High Dec 18
Latest price: $1.6430
S 1: $1.6400/11 21-DMA, Low Jan 2
S 2: $1.6358/60 High Nov 28, High Dec 13
S 3: $1.6317 38.2% of $1.5855-1.6603
S 4: $1.6295 Support line from Jul 9 low
USD/JPY descends to Y104.00 level where 21-DMA lies at Y103.99, bears look to take control after breaking below daily Tenkan line and a close below Y104.00 should reverse daily studies south. Weekly studies are overbought and further losses could see them reverse – further support is at Y103.54/59, daily Kijun line and 23.6% of Y97.62-105.43. However, bulls may attempt to retest the recent highs and close back above the daily Tenkan line at Y104.76.
R 4: Y106.18 Resistance line from August 1998
R 3: Y105.79 Daily Bollinger band top
R 2: Y105.43/50 High Jan 1, 61.8% of Y124.14-Y75.35
R 1: Y104.87 Hourly high & Low Dec 31
Latest price: Y104.23
S 1: Y103.92/99 High Dec 13, 21-DMA
S 2: Y103.54/59 Daily Kijun line, 23.6% of Y97.62-105.43
S 3: Y102.95 High Dec 12
S 4: Y102.45 38.2% of Y97.62-105.43
EUR/JPY falls through the channel base and descends to the 23.6% of Y131.22-145.69 – former support at 142.28 as bears already slipped below today. Initial support now the daily Kijun line at Y142.06 and a break below targets 38.2% level at 140.16. Daily studies are sharply lower and weekly studies could reverse south also. Bulls will aim to hold above Y141.00 which is the former 61.8% of Y169.96-94.12, but a break of this level could see further corrections.
R 4: Y145.09/18 Daily Bolli top, Channel base
R 3: Y144.42 Low Jan 1
R 2: Y143.90 Daily Tenkan line
R 1: Y143.32 Hourly high
Latest price: Y142.36
S 1: Y142.06/10 Daily Kijun line, Hourly low
S 2: Y141.69 High Dec 11
S 3: Y140.98/99 Low Dec 17, 61.8% of Y169.96-94.12
S 4: Y140.16/20 38.2% of Y131.22-145.69, Oct 2005 high
