Daily Market Technicals

EUR/USD continues to find support ahead of the 100-DMA with a close below the 100-DMA not seen since early Feb. Initial resistance is now noted at Monday’s $1.3775 high with bulls needing a close above to ease the current bearish pressure that is favouring a break lower that then targets the $1.3673 level. Overall, bulls need a close above the 21-DMA to end bearish hopes and shift focus back to 2014 highs.

RES 4: $1.3889 Alternating daily support/resistance

RES 3: $1.3831 21-DMA

RES 2: $1.3816 55-DMA

RES 1: $1.3775 High May 12

LPRICE: $1.3758

SUP 1: $1.3740 100-DMA

SUP 2: $1.3673 Monthly low Apr 4, rising daily trend line

SUP 3: $1.3644 Low Feb 27

SUP 4: $1.3622 200-DMA

The correction lower from ahead of the psychological $1.7000 level has so far paused ahead of the 21-DMA with a close below last seen back in early April. Bears look for a close below the 21-DMA to confirm a shift lower in focus that then targets the $1.6697-1.6719 region where the rising daily channel base and 55-DMA are located. Bulls now need a close back above $1.6913 to shift focus from a break of the 21-DMA and back to the 2014 high.

As daily tech studies continue to correct USD/JPY is working its way through the Y102.01-36 resistance region and is currently flirting with the 21-DMA. Bulls look for a close above Y102.36 to confirm an easing of bearish pressure and see immediate focus shift higher to the Y102.79-103.12 region. Bears need to see the Y102.36 level cap in order to retain focus on retests of the key Y100.75-101.32 region with the 200-DMA noted at Y101.13

The break lower Thursday was followed up with a dip below the Y139.96-140.02 support region to end the week. Bears are now targeting a continuation lower that tests the Y138.81 Feb 27 low with overall focus having shifted to the 200-DMA. Bulls now look for a close above the Y140.84 resistance level to ease the current bearish pressure and above the 21-DMA to target the Y142.47 level.

Fresh 2014 lows further confirm bearish pressure that now sees the immediate focus shift to the Gbp0.8005-35 region last seen in 2012. Initial resistance is now noted at Monday’s high but bulls need to see a close above the Gbp0.8191 level that previously supported to confirm an easing of bearish pressure. Overall a close above the 21-DMA is needed to see focus shift back to the Gbp0.8257-67 region where key moving averages are noted.