Pressure remains on the fresh 2014 low at $1.3333 set on Wednesday with bulls now needing a close above $1.3407 to ease bearish pressure a little. While $1.3407 caps immediate focus remains on the Nov 2013 monthly low. A close above the key $1.3445 resistance remains needed to shift immediate focus to the $1.3486-1.3517 region where the falling daily channel top and 38.2% Fibonacci resistance are located.
RES 4: $1.3485 High July 24
RES 3: $1.3460 21-DMA
RES 2: $1.3445 High Aug 1
RES 1: $1.3407 Alternating hourly support/resistance
LPRICE: $1.3360
SUP 1: $1.3333 2014 low Aug 6
SUP 2: $1.3294 Monthly low Nov 7 2013
SUP 3: $1.3223 High Sept 5 2013 now support
SUP 4: $1.3196 Falling daily channel base
GBP/USD is now extending losses below the 100-DMA with the pair trading at fresh 2 month lows and remaining heavy. Layers of resistance have developed in the $1.6821-94 region with bulls continuing to look for a close above $1.6894 to confirm an easing of bearish pressure with above $1.7003 now needed to shift focus back to 2014 highs. Bears now remain firmly focused on the $1.6693-1.6738 region with a break below targeting the 200-DMA ($1.6650).
RES 4: $1.6928 Hourly resistance July 30
RES 3: $1.6894 Hourly resistance July 31
RES 2: $1.6863 High Aug 7
RES 1: $1.6821 Low Aug 6 now resistance
LPRICE: $1.6812
SUP 1: $1.6802 Hourly support Aug 8
SUP 2: $1.6738 Low June 11
SUP 3: $1.6718 Monthly Low June 4
SUP 4: $1.6693 Monthly Low May 29
The sharp correction lower Wednesday managed to take out the key DMAs and the 61.8% Fibo of the Y101.07-103.10 move with dollar-yen now extending losses below key DMAs as it trades below the 21-DMA (Y101.91). Bulls now need to see a close above the Y102.45 resistance level to confirm a break back above the 200-DMA and shift focus back to the Y102.94-103.10 region. Daily studies are heading lower and adding weight to the bearish case
RES 4: Y102.66 High Aug 6
RES 3: Y102.45 Low Aug 5 now resistance
RES 2: Y102.28 200-DMA
RES 1: Y102.15 Hourly resistance Aug 8
LPRICE: Y101.80
SUP 1: Y101.60 Hourly support Aug 8
SUP 2: Y101.32 Low July 23
SUP 3: Y101.19 55-WMA
SUP 4: Y101.07 Monthly low July 10
Fresh 2014 & 9 month lows for the EUR/JPY this morning further confirm bearish pressure that sees bears currently targeting the Y134.05-10 region where the falling daily channel base and Nov 20 2013 low are located. Layers of resistance have developed in the Y136.46-138.16 region with bulls needing a close above Y137.36 to confirm an easing of bearish pressure and above Y138.16 to confirm a break of the 55-DMA and target Y139.30-140.11.
RES 4: Y137.65 Falling daily channel top
RES 3: Y137.36 Alternating daily support/resistance
RES 2: Y137.12 High Aug 7
RES 1: Y136.46 Hourly resistance Aug 8
LPRICE: Y135.93
SUP 1: Y135.73 2014 Low Aug 8
SUP 2: Y134.10 Low Nov 20 2013
SUP 3: Y134.05 Falling daily channel base
SUP 4: Y131.20 Monthly Low Nov 8 2013
The bounce from below the 21-DMA Wednesday gave bulls a little hope with a close above Gbp0.7991 needed to provide a little breathing room and confirm a break of the 55-DMA. The pair last closed above the 55-DMA in early April and such a close would shift focus back to the key Gbp0.8033-51 region. Bears need a close below Gbp0.7915 to confirm a break of the 21-DMA and bearish pressure and target the trend line projection.
RES 4: Gbp0.8033 High June 25
RES 3: Gbp0.7991 55-DMA
RES 2: Gbp0.7985 High Aug 1
RES 1: Gbp0.7972 Alternating hourly support/resistance
LPRICE: Gbp0.7945
SUP 1: Gbp0.7915 Low Aug 6
SUP 2: Gbp0.7904 Low July 28
SUP 3: Gbp0.7874 2014 Low July 23
SUP 4: Gbp0.7836 Trend line projection June/July lows
