EUR/USD continues to trade just above or just below the July support line, now at $1.3613. Daily studies rise and 10-day momentum slips into positive territory, we await today’s close to confirm, whereas weekly/monthly studies are near overbought. Key resistance is seen at $1.3668 and $1.3699, the 21-DMA and Jan 14 high, bulls look to close above. However, we note the daily Bolli band widens to the downside and bears target lows around $1.3582/83
R 4: $1.3785 Daily Bollinger band top
R 3: $1.3699/3707/11 High Jan 14, Low Dec 13, Reversal high Jan 2013
R 2: $1.3656/68 High Jan 7, 21-DMA
R 1: $1.3638/56 5-DMA,
Latets price: $1.3612
S 1: $1.3582/83 Lows Jan 15, 16
S 2: $1.3549/51/65 Low Jan 9, 21-week MA, 100-DMA
S 3: $1.3524 61.8% of $1.3296-1.3893
S 4: $1.3458 38.2% of $1.2755-1.3893
GBP/USD slips below the July support line and is testing support after yesterday’s move lower failed to break below the 38.2% of $1.5855-1.6603, initial support at $1.6317. A move through this level quickly runs into the 55-DMA and daily Bolli base at $1.6298 and $1.6289, respectively and next key support is at $1.6229 – the 50.0% level. However, bulls may look to retest the July support line at $1.6410 and a close back above $1.6400 adds risk higher.
R 4: $1.6466 High Dec 10
R 3: $1.6424/26 21-DMA, Former 23.6% of $1.5855-1.6603
R 2: $1.6410 July 9 Support line
R 1: $1.6376 5-day moving average
Latest price: $1.6335
S 1: $1.6315/17 Low Jan 16, 38.2% of $1.5855-1.6603
S 2: $1.6289/98 Daily Bolli base, 55-DMA
S 3: $1.6220/29 Low Dec 17, 50.0% of $1.5855-1.6603
S 4: $1.6181 23.6% of $1.4814-1.6603
USD/JPY remains stuck between the 21-DMA and daily Tenkan line, initial resistance and initial support at Y104.54 and Y104.10, respectively. Daily studies have stalled while weekly and monthly studies remain in overbought territory, bears likely aim to break below the Y104.00 level to retest support around Y102.86 – the Jan 13 low. However, failure to close below Y104.00 adds risk higher to the Y105.00 level which capped the upside yesterday.
R 4: Y106.18 Resistance line from August 1998
R 3: Y105.44/50 High Jan 2, 61.8% of Y124.14-Y75.35
R 2: Y104.99/105.06/12 Low Dec 30, Highs Jan 9, 8
R 1: Y104.54/55/59 21-DMA, Lows Jan 2, Jan 8
Latest price: Y104.33
S 1: Y104.09/10 Low Jan 15, Daily Tenkan line
S 2: Y103.83/97 Low Jan 10, Daily Kijun line
S 3: Y103.51/59 Daily Bolli base, 23.6% of Y97.62-105.44
S 4: Y102.86 Low Jan 13
EUR/JPY slips below Y142.00 to test daily Tenkan line as initial support at Y141.83 and just above yesterday’s low at Y141.80. A break below could see bears retest Jan 13 low at Y140.50, just below daily Bolli base at Y140.75. However, we note daily studies are bullish and failure to close below daily Tenkan line could shift sentiment higher. Key resistance is at Y142.88/91 – 21-DMA and Jan 16 high, above here is the daily Kijun line at Y143.10
R 4: Y144.42 Low Jan 1
R 3: Y143.10 Daily Kijun line
R 2: Y142.88/91 21-DMA, High Jan 16
R 1: Y142.28/36 23.6% of Y131.22-145.69, High Jan 13
Latest price: Y142.02
S 1: Y141.80/83 Low Jan 15, Daily Tenkan line
S 2: Y141.50 Low Jan 6
S 3: Y140.98/99 Low Dec 17, 61.8% of Y169.96-94.12
S 4: Y140.75 Daily Bollinger band base
