Daily Market Technicals

Yet another failure ahead of the key $1.3445 resistance level, this time failing at the 21-DMA, reconfirms bearish pressure on the key $1.3333 support. While $1.3445 caps bears favour a break lower that targets the long term falling daily channel base. Bulls now look for a close above the 21-DMA to provide some breathing room but a close above $1.3445 remains needed to confirm a break of the channel top and shift immediate focus to $1.3485

RES 4: $1.3485 High July 24

RES 3: $1.3445 High Aug 1, Falling channel top May/July highs

RES 2: $1.3400 21-DMA

RES 1: $1.3381 Hourly support Aug 18 now resistance

LPRICE: $1.3356

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: $1.3115 Falling daily channel base

The recovery back towards $1.6757 appears to be stalling despite correcting O/S daily studies supporting further topside. Bulls continue to look for a close above $1.6757 to ease bearish pressure. Layers of resistance remain $1.6855-1.7003 with bulls needing a close above $1.7003 to end bearish hopes and see overall focus return to retest of the 2014 highs. Initial support is now noted $1.6702-12 with bears needing a close below to reconfirm bearish pressure.

Despite spikes below the 21-DMA the pair has not managed a close below since closing above on July 24. Bears look for a close below the 21-DMA to confirm an easing of bullish pressure and a close below the 55-DMA to shift overall focus back to the Y101.07-50 region. While the 21-DMA supports bulls remain focused on the Y102.73-103.09 region although with the Bollinger band top at Y103.09 topside follow through above this level may initially be limited.