After having recently found support at $1.2414 the bounce Tuesday saw the EUR/USD spike above the 55-DMA before correcting lower from ahead of the $1.2578-99 region where the falling daily trend line is located. Bulls now need a close above $1.2599 to shift focus to the $1.2771-1.2885 region. While $1.2599 caps an overall bearish bias remains with a close below $1.2414 needed to reconfirm initial focus on 2014 lows.
RES 4: $1.2599 High Nov 19
RES 3: $1.2578 Falling daily trend line, Bollinger band top
RES 2: $1.2569 High Dec 16
RES 1: $1.2516 Hourly resistance Dec 16
LPRICE: $1.2484
SUP 1: $1.2414 Alternating hourly support/resistance
SUP 2: $1.2362 Low Dec 10
SUP 3: $1.2241 Low Aug 10 2012
SUP 4: $1.2133 Low Aug 2 2012
The Bollinger band top capped the break higher Tuesday with the GBP/USD looking a little heavy and drifting back towards initial support at $1.5677. Bears look for a close below this level to reconfirm bearish pressure and shift immediate focus to the $1.5595-1.5601 region where the Bollinger band base is located. While $1.5677 supports bulls favour tests of the $1.5759-89 region although follow through on breaks above are likely to be limited.
RES 4: $1.5871 55-DMA
RES 3: $1.5825 High Nov 27
RES 2: $1.5789 High Dec 16, Bollinger band top
RES 1: $1.5759 Hourly resistance Dec 16
LPRICE: $1.5720
SUP 1: $1.5677 Hourly resistance Dec 15 now support
SUP 2: $1.5601 Low Dec 15
SUP 3: $1.5595 Bollinger band base
SUP 4: $1.5541 2014 Low Dec 8
The correction from 2014 and 7 year highs resulted in a close below the rising daily channel base off Oct lows. The sell-off found support ahead of Y115.31-49 where the 38.2% Fibo is located. Layers of resistance have accumulated with bulls needing a close above Y118.16 to confirm a break of the short term falling daily channel top and shift immediate focus back to the Y119.09-93 region. While Y118.16 caps bears target the Y112.32-113.86 region.
RES 4: Y119.93 High Dec 9
RES 3: Y119.55 High Dec 12
RES 2: Y119.09 Hourly resistance Dec 12
RES 1: Y118.16 Hourly resistance Dec 15
LPRICE: Y117.00
SUP 1: Y116.23 Hourly support Dec 16
SUP 2: Y115.49 38.2% Fibonacci 105.19-121.85
SUP 3: Y115.31 Low Nov 13
SUP 4: Y114.59 Falling daily channel base
The sell-off Tuesday bounced from ahead of the ¥144.77 support level with the ¥147.15 resistance level capping the bounce and confirming significance. Bulls now look for a close above this level to relieve the immediate bearish pressure that sees bears targeting further tests of the ¥144.77 Nov 18 low although the Bollinger band base is expected to limit follow through. Overall a close above ¥148.37 is needed to shift focus back to 2014 highs.
RES 4: ¥148.95 High Dec 9
RES 3: ¥148.37 Hourly resistance Dec 9
RES 2: ¥147.43 21-DMA
RES 1: ¥147.15 Hourly support Dec 15 now resistance
LPRICE: ¥146.09
SUP 1: ¥145.56 Bollinger band base
SUP 2: ¥144.77 Low Nov 18
SUP 3: ¥143.82 38.2% Fibonacci retracement 134.14-149.80
SUP 4: ¥143.35 Low Nov 12
The lack of follow through following the correction lower from ahead of the Bollinger band top Tuesday is hinting at further downside with bears looking for a close below Tuesday’s low to confirm. Overall bears continue to look for a close below £0.7908 to shift immediate focus to the £0.7832-74 region. Bulls need a close above £0.7977 to confirm a bullish bias targeting the £0.8021-67 region
RES 4: £0.8041 Monthly High Nov 19
RES 3: £0.8021 200-DMA
RES 2: £0.7996 Bollinger band top
RES 1: £0.7977 Hourly resistance Dec 16
LPRICE: £0.7939
SUP 1: £0.7934 Low Dec 16
SUP 2: £0.7908 Alternating hourly support/resistance
SUP 3: £0.7893 Alternating hourly support/resistance
SUP 4: £0.7874 Low Dec 12