Daily Market Technicals

EUR/USD continues to hint at a retest of the 200-DMA following the bounce from Thursday’s lows below the 21-DMA ($1.3596). The $1.3672-77 region remains key resistance with bulls needing a close above to shift overall focus back to the $1.3775 level although the 55 & 100-DMA’s may slow the move a little. Bears now need to see a close below $1.3607 to ease bullish pressure while below $1.3564 shifts initial focus back to the $1.3503-12 region.

RES 4: $1.3704 55-DMA

RES 3: $1.3677 High June 6

RES 2: $1.3672 200-DMA

RES 1: $1.3651 High June 25

LPRICE: $1.3625

SUP 1: $1.3607 Hourly support June 26 & 27

SUP 2: $1.3576 Low June 26

SUP 3: $1.3564 Low June 20

SUP 4: $1.3535 Low June 17

The close back above $1.7006 sees bulls regain the upper hand with focus firmly on the 2014 highs. A break to fresh 2014 highs sees bulls initially targeting the $1.7198 Oct 21 2008 high with overall focus shifting sharply higher to the $1.7516 Oct 20 2008 high. Initial support is noted at $1.7020 with bears needing a close below to ease the bullish pressure while a close below $1.6953 is needed to hint at a deeper correction.

USD/JPY managed another marginal close above the 200-DMA but bears remain firmly in control with the break of Y101.49 targeting the Y100.75-85 region. Bears will continue to look for a close below the 200-DMA to confirm bearish pressure with bulls needing a close above to ease bearish pressure a little. Layers of resistance remain in the Y101.71-102.30 region with bulls needing a close above Y102.30 to end bearish hopes and target 2014 highs.

Repeated failures ahead of the 200-DMA finally appear to be having an impact with the pair spiking towards the Y137.72 low overnight and remaining heavy in Asian trading today. Initial resistance is noted on the hourlies at Y138.48 with bulls needing a close above to ease the bearish pressure. Overall bulls need a close above the 200-DMA to end bearish hopes and shift focus back to the Y140.40-95 region.

The move higher ran out of steam ahead of the 21-DMA on Thursday with the move lower confirming that bears remain in control until a close above the 21-DMA is seen. Despite O/S daily studies, the move lower sees focus shift back to the 2014 lows set earlier in the month with a break lower seeing bears targeting Gbp0.7764 2012 lows. Bulls need a close above Gbp0.8003 to ease bearish pressure and above the 21-DMA to shift immediate focus to the 100-DMA.