The correction lower from the failed attempt at the $1.3220 level gathered steam Friday with the bearish close around the lows for the week and below the $1.3150 support confirming immediate focus on the Sept 2013 monthly low. Layers of resistance remain $1.3159-1.3485 with bulls needing a close above $1.3221 to ease bearish pressure and above $1.3333 to confirm a break of the 21-DMA and shift overall focus to the $1.3445-85 region.
RES 4: $1.3262 Hourly resistance Aug 22
RES 3: $1.3221 High Aug 28
RES 2: $1.3196 High Aug 29
RES 1: $1.3159 Previous hourly support now resistance
LPRICE: $1.3126
SUP 1: $1.3101 Monthly Low Sept 7 2013
SUP 2: $1.3041 Falling daily channel base May-Aug
SUP 3: $1.2993 Low July 15 2013
SUP 4: $1.2898 High July 9 2013 now support
Despite daily studies looking to correct from O/S, the failure of the GBP/USD to gain a foothold above the $1.6600 level on numerous attempts last week is of some concern to bulls. A close above $1.6614 is needed to confirm an easing of bearish pressure but the $1.6757 level remains key with a close above needed to end bearish hopes. While $1.6614 caps bears look for retests of the $1.6535 level and a break lower that targets the falling daily channel base
RES 4: $1.6757 Low Aug 12 now resistance
RES 3: $1.6695 200-DMA
RES 2: $1.6654 Falling channel top
RES 1: $1.6614 High Aug 28 & 29
LPRICE: $1.6599
SUP 1: $1.6566 Low Aug 29
SUP 2: $1.6535 Low Aug 25
SUP 3: $1.6502 55-WMA
SUP 4: $1.6453 Falling daily channel base
The pullback from the Aug monthly highs found support ahead of the key Y103.40-50 region with the pair now pressuring recent highs. Initial support is noted on the hourlies in the Y104.00-12 region but bears continue to look for a close below Y103.40 to confirm an easing of bullish pressure. While Y103.40 supports bulls favour a break of the Aug monthly highs with overall focus on a retest of the 2014 highs from Jan 2.
RES 4: Y105.44 2014 High Jan 2
RES 3: Y104.92 High Jan 16
RES 2: Y104.66 Bollinger band top
RES 1: Y104.27 Monthly High Aug 25
LPRICE: Y104.16
SUP 1: Y104.12 Hourly support Sept 1
SUP 2: Y104.00 Hourly support Aug 29
SUP 3: Y103.50 Low Aug 22
SUP 4: Y103.40 Previous hourly resistance now support
Following last Tuesday’s close below the 21-DMA the EUR/JPY has failed to close back above with focus have returned to the 2014 low and the Nov 20 2013 low beneath. Initial resistance is noted Y137.05-41 with bulls needing a close above Y137.41 to confirm an easing of bearish pressure. Overall a close above Y138.07 is needed to end bearish hopes and shift focus to the Y138.77-139.30 region with the 100-DMA at Y138.78.
RES 4: Y137.79 Falling daily trend line
RES 3: Y137.64 55-DMA
RES 2: Y137.41 High Aug 26
RES 1: Y137.05 21-DMA
LPRICE: Y136.73
SUP 1: Y136.35 Low Aug 12
SUP 2: Y136.29 Bollinger band base
SUP 3: Y135.73 2014 Low Aug 8
SUP 4: Y134.10 Low Nov 20 2013
After struggling at the 21-DMA for the earlier part of last week and looking heavy the pressure finally took its toll with the pair diving back towards the Bollinger band base and July 28 low Friday. Bears take comfort in the relatively bearish close with immediate focus having shifted to the 2014 low and overall focus to the 2012 low. Bulls need a close above Gbp0.7930 to ease bearish pressure.
RES 4: Gbp0.8016 High Aug 22
RES 3: Gbp0.7980 High Aug 25
RES 2: Gbp0.7967 High Aug 26, 21-DMA
RES 1: Gbp0.7930 Previous hourly support now resistance
LPRICE: Gbp0.7903
SUP 1: Gbp0.7903 Low July 28, Bollinger band base
SUP 2: Gbp0.7874 2014 Low July 23
SUP 3: Gbp0.7812 Low Aug 16 2012
SUP 4: Gbp0.7768 2012 Low July 24
