Daily Market Technicals

EUR/USD continues to drift  towards the 21-DMA with bulls looking for a close above to confirm an easing of bearish pressure and see immediate focus shift to the $1.3666-77 region. A close above $1.3677 would confirm a break of the 200-DMA and hint at a sustained move higher with immediate focus shifting to the 55 & 100-DMA’s $1.3725-33. The 21-DMA is the last line of defence for bears with a close below needed to retain hopes of fresh 2014 lows

RES 4: $1.3725 55-DMA

RES 3: $1.3677 High June 6

RES 2: $1.3666 200-DMA

RES 1: $1.3602 Hourly resistance June 10, 21-DMA

LPRICE: $1.3591

SUP 1: $1.3583 Hourly support June 19

SUP 2: $1.3535 Low June 17

SUP 3: $1.3512 Low June 12

SUP 4: $1.3502 Low June 5

Whippy price action Wednesday saw cable dip to fresh lows for the week before bouncing sharply towards the recent 2014 highs. Bulls remain in control until a close below $1.6919 is seen with immediate focus shifting to the Aug 5 2009 high on a break to fresh 2014 highs. Bears need a close below $1.6919 to confirm an easing of bullish pressure and see immediate focus shift to layers of resistance clustered in the 1.6717-1.6817 region.

USD/JPY managed a brief spike above the Ichimoku cloud base before stalling ahead of the Y102.42 resistance level and correcting sharply lower to close back below key DMA’s. The topside failure sees immediate focus shift back to the 200-DMA with bears needing a close below to see overall focus shift lower to Y100.75-85. Bulls now need to see a close above Y102.42 to confirm an easing of bearish pressure and target Y104.13 Apr monthly highs.

The recovery from the fresh 4 month lows set on Monday continues as the EUR/JPY works its way back towards the 21 & 200-DMA’s. Bulls look for a close above Y139.46 as confirmation of a break and an ending of bearish hopes with immediate focus then shifting to additional layers of resistance in the Y104.09-36 region. While the 200-DMA caps bears will target 2014 lows with the main concern oversold daily tech studies.

ERU/GBP consolidates at the lower end of recent weekly ranges as daily tech studies languish at O/S levels. The Gbp0.8017 high from Wednesday is now seen as initial resistance with bulls needing a close above to confirm an easing of bearish pressure. While bears dominate they will continue to target fresh 2014 lows and more specifically the July 2012 low at Gbp0.7764. Bulls look for a close above the 21-DMA to shift focus back to the 200-DMA.