Daily Market Technicals

The $1.3583 resistance level remains key this week with the attempted recovery on Friday falling short of this level before falling to a relatively bearish close. While $1.3583 caps immediate bearish focus remains on a break of the June 5 low and a retest of 2014 lows. Bulls need a close above $1.3583 to ease bearish pressure and a close above the 21-DMA to shift focus back to the 200-DMA ($1.3661).

RES 4: $1.3623 21-DMA

RES 3: $1.3602 Hourly resistance June 10

RES 2: $1.3583 Previous hourly support now resistance

RES 1: $1.3546 Hourly resistance June 13

LPRICE: $1.3540

SUP 1: $1.3512 Low June 12, 21 day lower Bollinger band

SUP 2: $1.3502 Low June 5

SUP 3: $1.3477 2014 low Feb 3

SUP 4: $1.3400 Low Nov 21 2013

Bullish pressure continues to see the 2014 highs in danger of being broken with the GBP/USD pressuring last week’s high to start the week. A break to fresh 2014 highs see immediate focus shift to $1.7042. Initial support has developed on the hourlies at $1.6943 from Friday but bears really need to see a close below the $1.6922 hourly support from early Friday morning in Asia to confirm an easing of bullish pressure and hint at a deeper correction.

Immediate focus remain on the 200-DMA after remaining capped at Y102.14 Friday. Key moving averages are noted around Y102.20 with bulls needing a close above Y102.42 to confirm a break back above and see immediate focus shift back to retests of the Y102.80-103.02 region. Initial support remains at the 200-DMA with bears looking for a close below to add weight to the bearish case and target the Y100.75-80 region.

ERU/JPY continues to consolidate below the 200-DMA following last Thursday’s close below adding weight to the bearish case. Bulls need a close above the 200-DMA to ease bearish pressure and a close above Y139.46 to confirm a shift higher in focus with bulls then targeting the key Y140.09-94 region. While the 200-DMA caps bears favour a break of last week’s lows and overall are targeting the 2014 low.

The move lower continues with the Nov 2012 monthly low well within sight and overall focus now having shifted to the 2012 low at Gbp0.7764 set on July 23 2012. Initial resistance is now noted at Gbp0.8007 on the hourlies from Friday but bulls really need to see a close above the Gbp0.8032 previous hourly support and now resistance to ease bearish pressure. Daily studies remain very O/S but at present the bearish momentum is too strong to argue with.