The $1.2989 resistance level confirmed its significance with the EUR/USD pulling back from ahead of this level to start the new week. Bulls need to see a close above $1.2989 to confirm an easing of bearish pressure with bulls then needing a close above $1.3110 to confirm a break of the 21-DMA to end bearish hopes. While $1.2989 caps immediate focus remains on last week’s lows and the 2013 low overall with below $1.2909 needed to reconfirm bearish pressure.
RES 4: $1.3110 Low Sept 2 now resistance
RES 3: $1.3050 Hourly resistance Sept 4
RES 2: $1.3023 Falling short term channel top
RES 1: $1.2989 High Sept 5
LPRICE: $1.2937
SUP 1: $1.2909 Low Sept 12
SUP 2: $1.2859 2014 Low Sept 9
SUP 3: $1.2745 2013 Low Apr 4 2013
SUP 4: $1.2660 Monthly Low Nov 13 2012
The recovery from the brief dip below the 100-WMA has seen the GBP/USD capped around the $1.6281 resistance level confirming its significance. Bulls continue to look for a close above $1.6281 to ease bearish pressure with a close above $1.6440 needed to shift immediate focus to layers of resistance $1.6499-1.6650. Initial support remains in the $1.6183-1.6204 region with bears needing a close below to reconfirm bearish pressure and target $1.6007-48.
RES 4: $1.6440 Low Sept 3 now resistance
RES 3: $1.6422 21-DMA
RES 2: $1.6350 Hourly resistance Sept 4
RES 1: $1.6281 Low Sept 5 Now resistance
LPRICE: $1.6215
SUP 1: $1.6204 Low Sept 12
SUP 2: $1.6187 Low Sept 11
SUP 3: $1.6048 Low Nov 15 2013
SUP 4: $1.6007 200-WMA
USD/JPY is currently hesitating ahead of last week’s 6 year highs with daily studies remaining very O/B. Layers of support remain in the ¥105.72-106.64 region with bears needing a close below ¥106.52 to confirm an easing of bullish pressure. Overall a close below ¥105.72 is needed to hint at a deeper correction with below the 21-DMA then confirming. The ¥110.68 Aug 2008 high remains the current focal point with O/B studies and the Bollinger band top the key issues for bulls.
RES 4: ¥110.68 Monthly High Aug 2008
RES 3: ¥109.17 Monthly High Sept 2 2008
RES 2: ¥107.83 Bollinger band top
RES 1: ¥107.39 High Sept 12
LPRICE: ¥107.19
SUP 1: ¥106.64 Low Sept 11
SUP 2: ¥106.52 Hourly support Sept 10
SUP 3: ¥106.03 Hourly support Sept 9
SUP 4: ¥105.72 High Sept 5 now support
The ¥138.10 support remains key for now with bears needing a close below this level to confirm a break back below the 100-DMA and an easing of bullish pressure. The key concern for bulls at present is the Bollinger band top which is currently limiting topside follow through with the pair drifting back towards initial support as a result. Overall bears need a close below the 21-DMA to shift focus back to 2014 lows. While ¥138.10 supports bulls target the 200-DMA.
RES 4: ¥139.92 50.0% Fibonacci 142.51-135.73
RES 3: ¥139.82 200-DMA
RES 2: ¥139.31 Monthly high July 3
RES 1: ¥138.86 Alternating hourly support/resistance
LPRICE: ¥138.69
SUP 1: ¥138.33 100-DMA
SUP 2: ¥138.10 Hourly support Sept 11
SUP 3: ¥137.65 Hourly support Sept 10
SUP 4: ¥137.47 55-DMA
Following on from the sharp correction lower Wednesday the EUR/GBP found support below the 55-DMA (£0.7953). Bulls need to see a close above £0.8003 to ease the bearish pressure and above the 100-DMA to shift focus back to the £0.8066 level. The £0.7938 low from last week remains key support this week with a close below needed to confirm a break of the 55-DMA and reconfirm bearish pressure that sees bears initially target 2014 lows.
RES 4: £0.8153 200-DMA
RES 3: £0.8066 Low June 11 now resistance
RES 2: £0.8019 100-DMA
RES 1: £0.8003 Hourly resistance Sept 10
LPRICE: £0.7976
SUP 1: £0.7938 Low Sept 11
SUP 2: £0.7919 Low Sept 5
SUP 3: £0.7892 Low Sept 1
SUP 4: £0.7874 2014 Low July 23
