EUR/USD holds above the 50.0% of $1.3296-1.3893 level at $1.3594 while bears continue to pressure the downside. A break below $1.3600 level should see bears test the key July support line at $1.3570, a close beneath this level could accelerate losses to the 200-DMA at $1.3329. However, daily studies are near oversold and further failure to the downside adds risk higher and could threaten a test of the $1.3893 reversal high
R 4: $1.3820 Rising channel base, Daily Bolli top
R 3: $1.3754 Former Nov 7 support line
R 2: $1.3703/07 21-DMA, Low Dec 13
R 1: $1.3653 High Jan 6
Latest price: $1.3629
S 1: $1.3587/94 Daily Bolli base, 50.0% of $1.3296-1.3893
S 2: $1.3570 Support line from Jul 9
S 3: $1.3524/44 61.8% of $1.3296-1.3893, 100-DMA
S 4: $1.3462 Low Sept 25
GBP/USD leaves another doji around the 21-DMA which still shows a lack of direction – daily studies either trend sideways or are bearish so risk remains for a test of the key July support line at $1.6329 and just below is the 38.2% of $1.5855-1.6603 at $1.6317. A move through these levels threatens the Nov 12 low at $1.5855, however failure to break below the July support line could flip sentiment higher despite overbought weekly/monthly studies.
R 4: $1.6603 Reversal high Jan 2
R 3: $1.6553 Daily Bollinger band top
R 2: $1.6484 High Dec 18
R 1: $1.6434/39 Highs Jan 6, 7
Latest price: $1.6410
S 1: $1.6329 July Support line
S 2: $1.6317 38.2% of $1.5855-1.6603
S 3: $1.6273 Former Monthly Triangle Top
S 4: $1.6244/56 Daily Bolli base, 55-DMA
USD/JPY makes further progress higher after failing to break below the Y104.00 level – daily studies show the potential to reverse higher while weekly studies remain overbought. Bulls look to retest the Jan highs around Y105.44 and a break above targets the resistance line from August 1998 at Y106.18. However, failure at the Jan highs could see weekly/monthly studies reverse lower and threaten a move back toward the daily Ichimoku cloud.
R 4: Y106.18 Resistance line from August 1998
R 3: Y105.92 Daily Bollinger band top
R 2: Y105.44/50 High Jan 2, 61.8% of Y124.14-Y75.35
R 1: Y104.98/105.00 Low Dec 30, Hourly high
Latest price: Y104.84
S 1: Y104.55 Low Jan 2
S 2: Y104.08/25 Low Jan 3, 21-DMA
S 3: Y103.91 Low Jan 6
S 4: Y103.54/59 Daily Kijun line, 23.6% of Y97.62-105.44
EUR/JPY turns higher after failing to sustain a move below the daily Kijun line and 23.6% of Y131.22-145.69 – now initial support at Y142.06/28. Focus is turning to the upside as daily studies show signs of a reversal higher – a move through the daily Tenkan line at Y143.60 likely targets a move to the Dec 27 reversal high at Y145.69. However, weekly/monthly studies remain overbought and failure to break resistance will add downside pressure.
R 4: Y145.04 Daily Bollinger band top
R 3: Y144.42 Low Jan 1
R 2: Y143.60 Daily Tenkan line
R 1: Y143.32 High Jan 3
Latest price: Y142.93
S 1: Y142.06/28 Daily Kijun, 23.6% of Y131.22-145.69
S 2: Y141.42/50 Low Dec 13, Low Jan 6
S 3: Y140.98/99 Low Dec 17, 61.8% of Y169.96-94.12
S 4: Y140.64 Daily Bollinger band base
