Bulls take a little comfort in support having developed at $1.3513 Monday but layers of resistance remain $1.3549-87. Bulls need a close above $1.3587 to confirm an easing of bearish pressure and a shift in focus to layers of resistance $1.3628-1.3701. The O/S daily Slow Stochastic and proximity of the Bollinger base ($1.3501) remain a concern for bears given closes below the Bollinger base are a rarity, but while $1.3587 caps bears target 2014 lows.
RES 4: $1.3628 High July 15
RES 3: $1.3587 Hourly support July 15 now resistance
RES 2: $1.3574 High July 16
RES 1: $1.3549 High July 18
LPRICE: $1.3524
SUP 1: $1.3513 Low July 21
SUP 2: $1.3491 Low July 18
SUP 3: $1.3477 2014 Low Feb 3
SUP 4: $1.3421 200-WMA
GBP/USD spent Monday consolidating below the 21-DMA with bulls needing a close above to ease bearish pressure. While the 21-DMA caps pressure remains on $1.7007-35 with a close below needed to hint at a deeper correction that initially targets $1.6920-48. The $1.7151 resistance remains key this week, with bulls needing a close above to regain the upper hand and shift overall focus back to the rising daily channel top ($1.7242).
RES 4: $1.7191 2014 High July 15
RES 3: $1.7151 Hourly resistance July 16
RES 2: $1.7117 High July 18
RES 1: $1.7102 21-DMA
LPRICE: $1.7077
SUP 1: $1.7035 Low July 18
SUP 2: $1.7007 Low June 27
SUP 3: $1.6999 38.2% Fibonacci $1.6696-1.7191
SUP 4: $1.6948 55-DMA
USD/JPY continues to find support around the 55-WMA and Bollinger band base (Y101.08) ahead of the key Y100.75-82 support region. A close below the 55-WMA was last seen back in last 2012 with a close to add weight to the bearish case. Layers of resistance remain Y101.63-102.35 with bulls needing a close above Y101.63 to confirm an easing of bearish pressure and a close above the 200-DMA to target the key Y102.35 resistance level.
RES 4: Y102.11 100-DMA
RES 3: Y102.01 200-DMA
RES 2: Y101.80 High July 16
RES 1: Y101.63 Hourly support July 17 now resistance
LPRICE: Y101.49
SUP 1: Y101.11 55-WMA
SUP 2: Y100.82 Monthly low May 21
SUP 3: Y100.75 2014 Low Feb 4, Falling daily channel base
SUP 4: Y100.45 High Nov 15 2013 now support
EUR/JPY closed last week marginally below the 55-WMA (Y137.37) for the first weekly close below since Nov 2012 and has so far consolidated below to start the new week. Layers of resistance remain with bulls needing a close above Y137.42 to ease the current bearish pressure. Overall bulls need a close above the Y138.09 July 16 high to shift focus to further layers of resistance Y138.21-139.51. While Y137.42 caps immediate focus is on 2014 lows.
RES 4: Y138.21 21-DMA
RES 3: Y138.09 High July 16
RES 2: Y137.79 Hourly resistance July 16
RES 1: Y137.42 Hourly resistance July 17
LPRICE: Y137.25
SUP 1: Y136.71 Low July 18
SUP 2: Y136.23 2014 Low Feb 4
SUP 3: Y134.78 Falling daily channel base
SUP 4: Y134.10 Low Nov 20 2013
EUR/GBP has bounced a little from above the fresh 2014 and nearly 2 year lows set last Thursday & falling daily wedge base, but bears continue to retain overall focus on the 2012 low. Initial resistance remains on the hourlies at Gbp0.7938 with bulls needing a close above Gbp0.7938 to confirm an easing of bearish pressure and above Gbp0.7980 to shift focus back to the key Gbp0.8033 level. Initial support is remains on the hourlies at Gbp0.7903
RES 4: Gbp0.8033 High June 25
RES 3: Gbp0.7980 Hourly resistance July 2
RES 2: Gbp0.7953 Falling wedge top, 21-DMA
RES 1: Gbp0.7938 Hourly resistance July 15
LPRICE: Gbp0.7917
SUP 1: Gbp0.7903 Hourly support July 17
SUP 2: Gbp0.7887 Low Sept 5 2012
SUP 3: Gbp0.7878 Bollinger band base, Falling wedge base
SUP 4: Gbp0.7810 Monthly Low Aug 16 2012
