EUR/USD spikes higher to test the $1.3700 level where a number of previous highs and lows form resistance – now seen as initial res which capped yesterday’s large white candle. Bulls will aim to break above to rise to the daily Bolli band top at $1.3794, however failure at $1.3700 again could see bears return to test support. The 100-DMA was key res and now becomes key support at $1.3586 but ahead of here is the 21-DMA at $1.3646.
R 4: $1.3832 High Oct 28
R 3: $1.3794 Daily Bollinger band top
R 2: $1.3752 Former 23.6% of $1.3296-1.3893
R 1: $1.3698/99/3707 Highs Jan 23, 14, Low Dec 13
Latest price: $1.3691
S 1: $1.3644/46 Former Jul support line, 21-DMA
S 2: $1.3624/26 23.6% of $1.2755-1.3832, 55-DMA
S 3: $1.3582/83/86 Lows Jan 15, 16, 100-DMA
S 4: $1.3508/24 Low Jan 20, 61.8% of $1.3296-1.3893
GBP/USD squeezes above the Jan 2 high at $1.6603 and rises to test the 200-month MA which is at $1.6636, a level which bulls will look to close above while bears look to retest $1.6603. Daily studies rise while weekly/monthly studies look overbought – a completion of the double-bottom pattern from Sept 2013 targets $1.6690 and a move higher could stall here. However, we note cable is bullish while above the newly drawn July support line around $1.6365.
R 4: $1.6726 Monthly Bollinger band top
R 3: $1.6690 Sept 2013 Double-bottom measured move target
R 2: $1.6671 Weekly Bollinger band top
R 1: $1.6643 High Jan 23
Latest price: $1.6631
S 1: $1.6603 Former reversal high Jan 2
S 2: $1.6533/50 High Dec 30, 5-DMA
S 3: $1.6497 High Jan 9
S 4: $1.6466/68 High Dec 10, Former Jul 9 support line
USD/JPY plummets to retest the Jan 13 low and sends daily studies lower, weekly studies are also declining and further losses are likely. Initial support is around the Y103.00 level – the Jan 13 low, yesterday’s low and 55-DMA converge here. A break below targets the daily Ichimoku cloud top at Y102.75 followed by the key 38.2% of Y97.62-105.44 at Y102.45. But we remind the pair is seen in a bullish trend while above the Nov 16 support line at Y101.59.
R 4: Y104.43 21-day moving average
R 3: Y104.09/15 Low Jan 15, Daily Kijun line
R 2: Y103.83/95 Low Jan 10, Daily Tenkan line
R 1: Y103.59 Hourly high, 23.6% of Y97.62-105.44
Latest price: Y103.32
S 1: Y102.86/98/103.04 Lows Jan 13, 23, 55-DMA
S 2: Y102.75 Daily Ichimoku cloud top
S 3: Y102.45 38.2% of Y97.62-105.43
S 4: Y101.98 Low Dec 3
EUR/JPY broke above Y142.00 barrier yesterday but failed to close higher adding downside sentiment. Daily studies weakly rise but weekly/monthly studies are overbought – failure to retest Y142.00 would accelerate losses, bears eye initial support around the Y141.00 level and a break below here runs into key support just above Y140.00 – the daily Bolli base at Y140.02, 38.2% of Y131.22-145.69 at Y140.16 and daily Ichimoku cloud top at Y140.21
R 4: Y143.17 High Jan 8
R 3: Y142.91/143.01 High Jan 16, Daily Kijun line
R 2: Y142.42/52 High Jan 23, 21-DMA
R 1: Y141.83/86 Highs Jan 22, 21
Latets price: Y141.42
S 1: Y140.98/99 Low Dec 17, 61.8% of Y169.96-94.12
S 2: Y140.42 55-day moving average
S 3: Y140.16/21 38.2% of Y131.22-145.69, Daily Cloud top
S 4: Y139.43 Feb 2005 high
