The EUR/USD remains heavy after trading at fresh 2014 lows to start the new week with bearish focus having been confirmed on the 2012 low at $1.2042. The Bollinger band base remains the key concern for bears and may limit downside follow through. Initial resistance remains at $1.2302 but bulls now need a close above $1.2354 to confirm an easing of bearish pressure and above $1.2435 to shift focus back to the key $1.2599 level.
RES 4: $1.2435 Low Dec 16 now resistance
RES 3: $1.2386 Hourly support Dec 17 now resistance
RES 2: $1.2354 High Dec 18
RES 1: $1.2302 Hourly resistance Dec 19
LPRICE: $1.2238
SUP 1: $1.2222 Bollinger band base
SUP 2: $1.2216 Low Dec 18
SUP 3: $1.2183 Trend line projection
SUP 4: $1.2133 Low Aug 2 2012
The bounce from recent 2014 lows and the Bollinger band base stalled ahead of the 21-DMA Thursday with this level having also capped on Friday. Bulls need a close above the 21-DMA to confirm an easing of bearish pressure and to shift focus back to the key $1.5789-1.5825 region. While the 21-DMA caps bears remain focused on retests of the 2014 low with overall focus remaining on the $1.5425-62 region
RES 4: $1.5825 High Nov 27
RES 3: $1.5789 High Dec 16
RES 2: $1.5738 Hourly resistance Dec 17
RES 1: $1.5681 21-DMA
LPRICE: $1.5638
SUP 1: $1.5601 Alternating hourly support/resistance
SUP 2: $1.5572 Bollinger band base
SUP 3: $1.5541 2014 Low Dec 8
SUP 4: $1.5462 Low Aug 30 2013
The recovery from ahead of the ¥115.31 support continues with the ¥118.26 support remaining key. The break above ¥119.09 provided bulls with breathing space and sees immediate focus shift to the ¥119.93 resistance level. Bears continue to look for a close below ¥118.26 to ease the renewed bullish pressure and shift focus back to the ¥115.31-116.34 region. Daily studies are correcting higher and support further
topside with the Bollinger band top not yet an issue.
RES 4: ¥124.16 2007 June 2007
RES 3: ¥121.84 2014 High Dec 8
RES 2: ¥121.00 High Dec 9
RES 1: ¥119.93 High Dec 9
LPRICE: ¥119.52
SUP 1: ¥119.31 Hourly support Dec 22
SUP 2: ¥118.83 Low Dec 19
SUP 3: ¥118.26 Low Dec 18
SUP 4: ¥117.82 Hourly resistance Dec 17 now support
Higher daily lows following the dip back towards ¥144.77 are providing bulls with some comfort but a close above the 21-DMA remains needed to shift focus back to the ¥148.37-149.80 region. Initial support is now noted at ¥145.58 with bears needing a close below to reconfirm bearish pressure and below the key ¥144.77 support to shift immediate focus to the ¥142.09-143.35 region where the 55-DMA is located. Daily studies are correcting from modestly O/S and are supportive of further topside.
RES 4: ¥148.95 High Dec 9
RES 3: ¥148.37 Hourly resistance Dec 9
RES 2: ¥147.27 21-DMA
RES 1: ¥147.15 Hourly support Dec 15 now resistance
LPRICE: ¥146.30
SUP 1: ¥145.58 Low Dec 18
SUP 2: ¥144.77 Low Nov 18
SUP 3: ¥143.82 38.2% Fibonacci retracement 134.14-149.80
SUP 4: ¥143.34 Low Nov 12
The correction lower from last week’s high has seen immediate focus shift to the £0.7798-0.7809 region and overall focus back to the key £0.7764-66 region where 2012 and 2014 lows are located. Bulls now need a close above £0.7858 to confirm an easing of bearish pressure and above £0.7923 to shift overall focus back to the £0.8001-67 region where layers of resistance are located. The Bollinger band base
(£0.7823) is the key concern for bears.
RES 4: £0.7954 High Dec 17
RES 3: £0.7923 High Dec 18
RES 2: £0.7885 Hourly resistance Dec 18
RES 1: £0.7858 Hourly resistance Dec 18
LPRICE: £0.7822
SUP 1: £0.7809 Falling daily channel base
SUP 2: £0.7798 Low Nov 6
SUP 3: £0.7766 2014 Low Sept 30
SUP 4: £0.7764 2012 Low July 23 2012