Since breaking and closing below the 100-DMA for the first time since early Feb the pair had consolidated below as it hesitates ahead of the rising daily trend line and Apr 4 monthly low. Overall, bears now target a break lower that tests the 200-DMA with a close below last seen briefly in early Sept 2013. The 100-DMA remains initial resistance with a close above needed to ease bearish pressure and a close above the 21-DMA to shift overall focus higher.
RES 4: $1.3819 21-DMA
RES 3: $1.3816 55-DMA
RES 2: $1.3775 High May 12
RES 1: $1.3740 100-DMA
LPRICE: $1.3713
SUP 1: $1.3673 Monthly low Apr 4
SUP 2: $1.3644 Low Feb 27
SUP 3: $1.3624 200-DMA
SUP 4: $1.3563 Low Feb 12
After looking heavy heading into the London open on Wednesday GBP/USD didn’t disappoint with a sharp move lower that sees bearish focus firmly on the layers of support in the $1.6683-1.6748 region. Initial resistance is noted on the hourly time frame at $1.6788 but bulls are looking for a close above the 21-DMA to ease the current bearish pressure and see immediate focus shift to the $1.6875-1.6902 region.
RES 4: $1.6875 High May 14
RES 3: $1.6842 21-DMA
RES 2: $1.6819 Previous daily support now resistance
RES 1: $1.6788 Hourly resistance May 15
LPRICE: $1.6774
SUP 1: $1.6748 High Apr 15 now support
SUP 2: $1.6722 55-DMA
SUP 3: $1.6710 Rising daily trend line
SUP 4: $1.6683 Low Apr 15
The Y102.36 level confirmed its significance as resistance on Tuesday, capping the recovery from ahead of the key Y100.75-101.32 support region with the correction lower seeing this support region become the focal point once more. Initial resistance is noted at Y101.94 but bulls continue to look for a close above Y102.36 to end bearish hopes and see immediate focus shift higher to the Y102.76-103.12 resistance region
RES 4: Y103.00 High May 2
RES 3: Y102.73 100-DMA
RES 2: Y102.36 Hourly resistance May 2, 55-DMA
RES 1: Y101.94 Hourly resistance May 14
LPRICE: Y101.82
SUP 1: Y101.43 Low May 7
SUP 2: Y101.32 Low Apr 10
SUP 3: Y101.21 Low Mar 14
SUP 4: Y101.18 200-DMA
EUR/JPY has continued to remain heavy following the break to the downside that took out the Y140.99 support level last week. The pair has now taken out the Y139.92 support with bears initially targeting the Y138.81 Feb 27 low. Bulls need a close above the Y140.94 level to ease the bearish pressure and a close above key moving averages clustered in the Y141.20-39 region to shift focus back to the Y142.46 region.
RES 4: Y142.46 High Apr 29
RES 3: Y141.39 55-DMA
RES 2: Y140.94 High May 13
RES 1: Y140.32 Hourly resistance May 13
LPRICE: Y139.67
SUP 1: Y139.47 Low May 14
SUP 2: Y139.14 61.8% Fibonacci 136.28-143.77
SUP 3: Y138.81 Low Feb 27
SUP 4: Y137.85 200-DMA
Fresh 2014 lows Wednesday were followed up with a sharp correction higher that eases the bearish pressure and provides bulls with a little breathing room. Bulls still 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
RES 4: Gbp0.8264 100-DMA
RES 3: Gbp0.8257 High Apr 29
RES 2: Gbp0.8205 21-DMA
RES 1: Gbp0.8191 Low Feb 28 now resistance
LPRICE: Gbp0.0.8175
SUP 1: Gbp0.8129 2014 Low May 14
SUP 2: Gbp0.8035 Low Dec 10 2012
SUP 3: Gbp0.8005 Low Nov 21 2012
SUP 4: Gbp0.7960 Monthly low Nov 8 2012
