Recent hesitation at the $1.5945 resistance level has resulted in fresh 2014 and 14 month lows for cable with immediate focus having shifted to the $1.5425-62 region. Layers of resistance have accumulated with bulls now needing a close above $1.5789 to ease bearish pressure and above $1.6038 to confirm a break of the 21-DMA and shift immediate focus back to the $1.6185-1.6228 region. Key concerns for bears come from O/S daily studies and the Bollinger band base ($1.5697).
Layers of support continue to accumulate in the ¥113.86-115.72 region. Initial support is noted at ¥115.72 on the hourlies but bulls need to see a close below the ¥114.62-88 region to confirm an easing of bullish pressure. Overall a close below ¥113.86 remains needed to hint at a deeper correction initially targeting ¥112.49-98 and then the 21-DMA at ¥111.49. While ¥114.62 supports, immediate focus remains on fresh 2014 highs and then the ¥117.94-119.82 region.
After recently having found support at the ¥142.06 level the sharp move higher Tuesday sees bulls firmly focused on the ¥146.29-54 region where the Bollinger band and rising channel tops are located. Layers of support continue to accumulate with bears needing a close below ¥143.34 to ease bullish pressure and below ¥142.06 to hint at a deeper correction. The key concern for bulls comes from the O/B daily studies that may begin to limit topside follow through but while ¥143.34 supports bulls clearly dominate with higher levels favoured.
The close above the £0.7864 level has seen bulls extend gains with the 61.8% Fibo and Bollinger band top currently capping. Layers of support have developed in the £0.7864-0.7927 region with bears needing a close below the 100-DMA to ease bullish pressure and below £0.7864 to confirm breaks of 21 & 55-DMAs, shifting focus back to the £0.7764-66 region. The Bollinger band top remains the key concern for bulls but overall focus remains on £0.8046-67 while £0.7864 supports.