Daily Market Technicals

ERU/USD managed another brief pop above the 21-DMA but fell short of last week’s high before heading sharply lower and managing a relatively bearish close. Bears favour a retest of the 2014 lows while the $1.3677 level caps. Bulls look for a close above this level to confirm an easing of bearish pressure with focus then shifting to the $1.3739-81 region. The 21 day upper Bollinger may limit any downside follow through due to its proximity.

RES 4: $1.3751 55-DMA

RES 3: $1.3739 100-DMA

RES 2: $1.3677 High June 6

RES 1: $1.3626 Hourly resistance June 9

LPRICE: $1.3584

SUP 1: $1.3683 Low June 9

SUP 2: $1.3562 21 day lower Bollinger band

SUP 3: $1.3502 Low June 5

SUP 4: $1.3477 2014 low Feb 3

GBP/USD continues to oscillate around the 21-DMA ($1.6798) as support at $1.6781 holds. Bears need to see a close below $1.6781 to confirm a break of the 21 & 55-DMA’s and see immediate focus shift to the 100-DMA. Bulls need to see a close above Friday’s high to kick start bullish momentum and see focus shift back to the $1.6881-1.6919 region. Daily studies are at neutral levels and not currently an issue.

The dip Friday saw the USD/JPY test the Y101.89-23 support region with the pair reversing its move below the 55 & 100-DMA’s to manage a relatively bullish close. The pair largely consolidated above the 55 & 100-DMA’s last week and bears now need to see a close below the Y101.89 support to end bullish hopes and see the focus shift back to the 200-DMA. While the Y101.89 support remains in play bulls will target the Y103.02 May 2 high and then the 2014 highs above.

EUR/JPY started the week with bearish pressure dominating and a break below the 21-DMA today confirming an easing of previous bullish pressure. Initial resistance is noted on the hourlies at Y139.46 with bulls needing a close above to ease the developing bearish pressure. The break lower to start the new week has seen focus shift to the 200-DMA and elusive closes below. Bears look for a close below the 200-DMA to add weight to the bearish case.

EUR/GBP traded at fresh 2014 and 18 month lows last week before recovering lost ground but only to remain capped by the 21-DMA to end the week. Bulls need a close above the 21-DMA to hint at an easing of bearish pressure and a close above Gbp0.8159 to confirm and see immediate focus shift to the Gbp0.8112-0.0.8257 region. Overall while Gbp0.8159 caps bears will target fresh 2014 lows with potential for sub Gbp0.8000 levels existing.