Daily Market Technicals

Bulls take a little comfort from Thursday’s close above the 21-DMA which was the first since early May. The $1.3583-02 region remains key support with bears needing a close below to confirm a break back below the 21-DMA and shift immediate focus back to the $1.3500-15 region. While $1.3583 supports pressure shifts to the $1.3668-77 region with a close above shifting immediate focus to the $1.3724-81 region.

RES 4: $1.3724 55-DMA

RES 3: $1.3677 High June 6

RES 2: $1.3666 200-DMA

RES 1: $1.3643 High June 19

LPRICE: $1.3625

SUP 1: $1.3598 21-DMA

SUP 2: $1.3583 Hourly support June 19

SUP 3: $1.3535 Low June 17

SUP 4: $1.3512 Low June 12

Fresh 2014 and multi-year highs confirm bullish dominance with immediate focus shifted to $1.7198. The 21 day upper Bollinger may moderate the move higher a little with closes above a rarity. Initial support is noted on the hourlies at $1.7032 but bears will continue to look for a close below $1.6919 to confirm an easing of bullish pressure and see immediate focus shift back to the 21-DMA. It should be noted that daily studies remain at lofty levels.

USD/JPY managed a brief spike above the Ichimoku cloud base on Wednesday before stalling ahead of Y102.42 and correcting sharply lower to close back below key DMA’s. The topside failure sees immediate focus having shifted back to the 200-DMA with bears needing a close below to see overall focus shift lower to the Y100.75-85 region. 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 of key moving averages 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 looking to correct.

Despite spikes higher this week the EUR/GBP has been able to provide any topside follow through with daily closes remaining relatively bearish. Bulls need to see a close above Gbp0.8032 to confirm an easing of bearish pressure with immediate focus then shifting to the Gbp0.8072-0.8105 region where the 21-DMA and falling daily trend line are located. Daily studies remain at very O/S levels and will come into play on a close above Gbp0.8032.