EUR/USD zipped higher from the Sept 6 support line but then pared gains to leave a bearish looking candle with a long upper shadow, failure to close above $1.3700 adds further pressure lower. Daily studies rise but weekly studies decline – bears likely aim to retest the Sept 6 support line at $1.3539 and a break below could target July 2012 support line at $1.3168, however, the pair is trending higher while above this key level.
R 4: $1.3811 Highs Dec 11 & Dec 18
R 3: $1.3784 Daily Bollinger band top
R 2: $1.3739/52 High Jan 24, Former 23.6% of $1.3296-1.3893
R 1: $1.3698/99/3707 Highs Jan 23, 14, Low Dec 13
Latest price: $1.3682
S 1: $1.3660/65 Low Jan 24, 38.2% of $1.3296-1.3893
S 2: $1.3624/31/43 23.6% of $1.2755-1.3832, 55-DMA, 21-DMA
S 3: $1.3582/83/90 Lows Jan 15, 16, 100-DMA
S 4: $1.3524/43 61.8% of $1.3296-1.3893, Sept 6 support line
GBP/USD posts a sharp decline from the new 2014 high at $1.6668 which may become a key outside day reversal or bearish engulfing candle, bears aim to confirm today and risk is on a slide to the redrawn July support line at $1.6375. Daily studies are collapsing and weekly/monthly studies remain overbought bears look to break below initial support from the 23.6% of $1.5855-1.6668 at $1.6476 and the 38.2% is further support at $1.6357
R 4: $1.6668 High Jan 24
R 3: $1.6643 High Jan 23
R 2: $1.6603/09 Former reversal high Jan 2, Daily Bolli band top
R 1: $1.6533/37 High Dec 30, 5-DMA
Latest price: $1.6510
S 1: $1.6466 21-DMA & High Dec 10
S 2: $1.6400 Low Jan 21
S 3: $1.6357/75 38.2% $1.5855-1.6668, Redrawn July support line
S 4: $1.6324 Daily Bollinger band base
USD/JPY corrects lower to test the support line drawn from Nov 2012 – now at Y101.66 and key initial support. Daily studies are mixed but weekly studies are in sell-mode and a break below this key level could target the 200-DMA at Y99.99. However, current price action shows a long lower-shadow and a close around Y102.50 level shows upside pressure – initial resistance is the daily Bolli base and daily Ichimoku cloud top at Y102.63/75, respectively
R 4: Y103.59/60 23.6% of Y97.62-105.44, Daily kijun line
R 3: Y103.35/39 Daily Tenkan line, High Dec 10
R 2: Y102.98/103.09 Low Jan 23, 55-DMA
R 1: Y102.63/75 Daily Bolli band base, Daily Ichimoku cloud top
Latest price: Y102.45
S 1: Y101.66/77 Support line from Nov 2012, Hourly low
S 2: Y101.53 Reversal high Jul 8 & 50.0% of Y97.62-105.44
S 3: Y100.79/96 Daily Ichimoku cloud base, 100-DMA
S 4: Y100.61 Reversal high Sept 11 & 61.8% of Y97.62-105.44
EUR/JPY slides to daily Ichimoku cloud and currently holds just above the top at Y140.21. Current price action shows a fairly long lower shadow and a close around the current level could add some risk higher, however we note weekly studies slide and monthly studies are overbought which would limit any upside move. Initial support is Y139.22 – the hourly low, a break below could target the July 2012 support line which is drawn on the weekly chart at Y138.49.
R 4: Y142.24/42 21-DMA, High Jan 23
R 3: Y141.83/86 Highs Jan 22, 21
R 2: Y140.98/99/141.05 Low Dec 17, 61.8% Y169.96-94.12, Daily Tenkan
R 1: Y140.52 55-day moving average
Latest price: Y140.25
S 1: Y139.20/22 Hourly low, Jun 2009 high
S 2: Y138.72 Aug 2009 high
S 3: Y138.46/49 50.0% of Y131.22-145.69, July 2012 support line
S 4: Y137.22/35 100-DMA, High Nov 22
