Daily Market Technicals

The recovery from Friday’s $1.3705 low continues as daily studies threaten to correct from oversold levels and remain supportive of further topside. Bulls look for a close above the 21-DMA to confirm a bigger bounce that then sees focus shift higher to retests of the key $1.3879 resistance. Bears will be looking for the 21-DMA to cap to retain focus on retests of the $1.3682-1.3711 region with the 21 day lower Bollinger noted at $1.3711

RES 4: $1.3947 High Mar 17

RES 3: $1.3879 Low Mar 17 now resistance

RES 2: $1.3847 Hourly resistance Mar 25

RES 1: $1.3827 21-DMA

LPRICE: $1.3800

SUP 1: $1.3789 Hourly support Apr 1

SUP 2: $1.3764 Hourly support Mar 31

SUP 3: $1.3705 Low Mar 28

SUP 4: $1.3680 100-DMA

Bullish momentum appears to be waning before GBP/USD managed to retest $1.6718. Bears now look for a close below the 21-DMA to see focus shift back to the rising daily trend line coming in around $1.6517 today. Solid support is noted in the $1.6465-70 region including the 21 day lower Bollinger band and 100-DMA which are likely to slow any correction. Bulls will look for the 21-DMA to hold and a close above $1.6684 to kick start bullish momentum.

USD/JPY continues to make gains following the close above the falling daily trend line. Bulls are looking for a continuation higher that initially targets the Y104.92-105.44 region, although the 21 day upper Bollinger band (Y103.90) may limit topside follow through a little. Bears need to see a close below Y103.61 to ease the immediate bullish pressure while a close below Y102.80 is needed to shift overall focus lower once more.

As daily tech studies head higher and remain supportive of further topside, bulls are currently targeting a continuation higher that tests the Y143.79 Mar 7 high with a close above then seeing focus shift to the 2014 high with the 21 week upper Bollinger just below. Bears now need a close below Y142.90 to ease the current bullish pressure and below Y141.78 to shift overall focus lower.