Daily Market Technicals

The $1.3889-1.3905 region continues to support the EURUSD with immediate focus remaining on the $1.3967 2014 high until a break lower is seen. A break above $1.3967 would then see bulls shift focus sharply higher and target the $1.4247 monthly high from Oct 2011. Bears need a close below $1.3889 to confirm an easing of bullish pressure and a close below the 21-DMA to shift focus back to retests of last week’s $1.3771 low

RES 4: $1.4247 Monthly high Oct 27 2011

RES 3: $1.3975 21 week upper Bollinger band

RES 2: $1.3967 2014 high Mar 13

RES 1: $1.3951 High May 6

LPRICE: $1.3914

SUP 1: $1.3905 Monthly high Apr 11 now support

SUP 2: $1.3889 High May 1 now support

SUP 3: $1.3869 Hourly support May 5 & 6

SUP 4: $1.3848 21-DMA

After closing above the 21 day upper Bollinger ($1.6968) the past two days cable has consolidated while the rising upper Bolli catches up. Hesitation ahead of the 2014 highs and psychological $1.7000 level is of some concern to bulls, especially given O/B daily studies long overdue for a correction. In saying that, bears still need a close below $1.6919 to ease bullish pressure and below $1.6821 to shift overall focus lower.

Lower daily highs/lows continued Wednesday before the USD/JPY bounced from just short of the Y101.32 support. Layers of resistance remain in the Y102.01-36 region with bulls needing a close above Y102.36 to confirm an easing of bearish pressure and see immediate focus shift higher to the Y102.85-103.10 region. While the Y102.01-36 region caps, bears will continue to target the Y100.75-101.32 region with the key 200-DMA noted at Y101.08

EUR/JPY continues to oscillate around the triangle base (Y141.61) but has so far failed to close below either the triangle base or the 100-DMA (Y141.30). Bears continue to look for a close below Y140.99 to confirm a break lower with focus then shifting to the Y139.96-140.02 region. A close back above the Y142.08 May 6 high is needed to provide bulls with some breathing space and see focus shift to a break of the daily triangle top.

After having failed at the 21-DMA on Monday the correction lower marginally traded at fresh 3 month lows again before pausing just short of the Gbp0.8191 Feb 28 low. Bulls continue to look for a close above the 21-DMA to confirm an easing of bearish pressure, whereas a close above Gbp0.8257 is needed to hint at further topside and shift immediate focus to the 55 & 100-DMA’s. While Gbp0.8230-57 caps, bears now target retests of the 2014 low.