After having failed to close above the 21-DMA on recent attempts bearish focus has re-emerged with the result being a move lower that firmly has the 2014 lows in its sights. Layers of resistance have developed on the hourlies with bulls needing a close back above the $1.3583 level to ease the current bearish pressure and a close above $1.3602 to shift focus back to the $1.3639-75 region. Fresh 2014 lows see initial focus shift to the 200-WMA.
RES 4: $1.3626 Hourly resistance June 9
RES 3: $1.3602 Hourly resistance June 10
RES 2: $1.3583 Previous hourly support now resistance
RES 1: $1.3558 Hourly resistance June 10
LPRICE: $1.3532
SUP 1: $1.3502 Low June 5
SUP 2: $1.3477 2014 low Feb 3
SUP 3: $1.3400 200-WMA, Low Nov 21 2013
SUP 4: $1.3294 Monthly low Nov 7 2013
The break and close below the previous $1.6782 support combined with lower daily highs is indicative of a build up in bearish pressure that now sees focus shift to the 100-DMA with a close below last seen is Aug 2013. The previous support at $1.6782 now becomes initial resistance with bulls needing a close above to ease the bearish pressure. Overall a close above the $1.6845 June 6 high is needed to shift focus back to the $1.6919 May 21 high.
RES 4: $1.6919 High May 21
RES 3: $1.6881 High May 27
RES 2: $1.6845 High June 6
RES 1: $1.6782 Previous daily support now resistance
LPRICE: $1.6750
SUP 1: $1.6722 Low June 5
SUP 2: $1.6692 100-DMA
SUP 3: $1.6659 Low Apr 15
SUP 4: $1.6466 Monthly Low May 24
Daily tech studies remain at O/B levels and weighing on the USD/JPY with it currently hovering precariously above thY101.89-102.12 where key moving averages are located. Bulls initially look for a close above Y102.42 to ease the bearish pressure a little and shift immediate focus back to the Y102.80-103.02 region. While initial resistance caps, bears are targeting a break lower with focus shifting to the 200-DMA and the elusive close below
RES 4: Y103.39 High Apr 7
RES 3: Y103.02 High May 2
RES 2: Y102.80 High June 4
RES 1: Y102.42 Hourly resistance June 10
LPRICE: Y102.26
SUP 1: Y102.12 Low June 6
SUP 2: Y101.99 21-DMA
SUP 3: Y101.89 Previous hourly resistance now support
SUP 4: Y101.56 200-DMA
EUR/JPY continues its correction lower after failing ahead of the Y140.27 hurdle with the close below the 200-DMA on Tuesday adding weight to the bearish case. The 200-DMA now becomes initial resistance with bulls needing a close above to ease the bearish pressure but overall a close above Y139.46 is needed to shift focus back to the Y140.27-94 region. Immediate pressure shifts to the May monthly low with overall focus firmly on the 2014 low.
RES 4: Y140.55 100-DMA
RES 3: Y140.27 High May 14
RES 2: Y139.46 Hourly resistance June 9
RES 1: Y138.71 200-DMA
LPRICE: Y138.45
SUP 1: Y137.97 Monthly Low May 29
SUP 2: Y136.37 55-WMA
SUP 3: Y136.23 2014 Low Feb 4
SUP 4: Y134.10 Low Nov 20 2013
Fresh 2014 and 18 month lows on Tuesday, albeit by a pip, further confirm the bearish dominance with bears now focused on sub Gbp0.8000 levels. 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 Gbp0.8112-0.8257 region. Overall while Gbp0.8159 caps bears will now target sub Gbp0.8000 levels.
RES 4: Gbp0.8159 High May 19
RES 3: Gbp0.8126 21-DMA
RES 2: Gbp0.8098 Previous hourly support now resistance
RES 1: Gbp0.8086 Hourly resistance June 10 & 11
LPRICE: Gbp0.8082
SUP 1: Gbp0.8063 2014 Low June 10
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
