Daily Market Technicals

EUR/USD continues to work its way lower with Friday’s close below the 200-DMA the first since early Sept. The close below adds weight to the bearish case with immediate focus having shifted to retests of the $1.3563 low from Feb 12. Initial resistance is noted at the 200-DMA but bulls need to see a close above the $1.3688 resistance to ease bearish pressure and see the immediate focus shift to layers of resistance in the $1.3737-99 region.

RES 4: $1.3775 High May 12

RES 3: $1.3737 100-DMA

RES 2: $1.3688 Hourly resistance May 22

RES 1: $1.3638 200-DMA

LPRICE: $1.3620

SUP 1: $1.3615 Low May 23

SUP 2: $1.3582 21 day lower Bollinger band

SUP 3: $1.3563 Low Feb 12

SUP 4: $1.3477 2014 low Feb 3

The rally from the May monthly low so far ran out of steam at the $1.6920 hurdle last week with rallies capped in this region Tuesday and Wednesday seeing bearish pressure resume. The close back below the 21-DMA relieved the renewed bullish pressure and sees bears now targeting the key $1.6737-56 support region where the rising daily trend line and 55-DMA are located. Bulls need a close above last week’s high to target 2014 highs.

USD/JPY recovered lost ground to end the week marginally above the 21-DMA (Y101.92) following the dip below the 200-DMA on Wednesday. The close above the 21-DMA eases the previous bearish pressure a little but bulls now look for a close above the 100-DMA to end bearish hopes and retarget 2014 highs. Last Friday’s low is key support to start the new week with bears needing a close below to shift focus back to closes below the 200-DMA

The recovery from the 200-DMA combined with correcting oversold daily tech studies is a worry for bears. In saying that, bulls still need a close above the Y139.33 May 20 high to confirm an easing of bearish pressure and a close above Y140.99 to see bulls targeting Y142.47. While the Y139.33 level caps, bears continue to target the 200-DMA with a close below seeing 2014 lows become the focal point.

EUR/GBP consolidated at the lower end of last week’s range, again trading at fresh 2014 lows. A previous 2014 low at Gbp0.8119 remains initial resistance with bulls needing a close above to relieve the immediate bearish pressure. Bulls still need to see a close above the Gbp0.8191 level to end bearish hopes and see immediate focus shift higher to the 55 & 100-DMA’s around Gbp0.8250. For now bearish focus targeting sub Gbp0.8000 levels remain favoured