Daily Market Technicals

The spike to fresh 2014 highs was sharply reversed on Thursday with the relatively bearish close back below the 21-DMA ($1.3842) easing bullish pressure and seeing immediate focus shift back to the $1.3771 low from last week. Bulls now need a close back above the $1.3889-1.3905 region to see focus shift higher once more. Bears now look for a close below $1.3771 to end bullish hopes and see immediate focus shift to the 100-DMA.

RES 4: $1.4247 Monthly high Oct 27 2011

RES 3: $1.3992 2014 high May 8

RES 2: $1.3905 Alternating daily support/resistance

RES 1: $1.3889 Alternating daily support/resistance

LPRICE: $1.3840

SUP 1: $1.3817 55-DMA

SUP 2: $1.3771 Low Apr 30

SUP 3: $1.3739 100-DMA

SUP 4: $1.3673 Monthly low Apr 4

The hesitation ahead of the recent fresh 2014 highs and psychological $1.7000 level is of some concern to bulls, especially given O/B daily studies are overdue for a correction and the sequence of lower daily highs the past two days. The move back below the previous $1.6919 support is also giving bears some hope and a close below the 21-DMA would see focus shift to the rising channel base around $1.6685 today

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 Y101.09.

The move higher Thursday stalled ahead of the Y142.47 resistance level with the triangle top noted just above before correcting sharply lower. The break and close below the Y140.99 previous support confirms a break of the triangle base, giving bears some breathing room and seeing immediate focus shift to the key Y139.96-140.02 support region. Bulls now need a close back above Y141.14 to ease the current bearish pressure

EUR/GBP managed another spike above the 21-DMA that fell short of the Gbp0.8257 resistance level before reversing sharply lower and taking out the Gbp0.9192-98 region that has supported the past two weeks. The sharp move lower reconfirms bearish focus and sees bears firmly focused on a retest of 2014 lows with a break lower then targeting the 2013 low. Bulls need a close above the Gbp0.8191 level to ease the current bearish pressure.