EUR/USD remains heavy but has so far failed to retest the fresh 2015 and 11+ year lows seen on Friday with initial support now noted at $1.1540. Bears need a close below this level to reconfirm immediate focus on the 2015 low and overall focus on the $1.1137-1.1383 region. Layers of resistance remain with bulls now needing a close above $1.1649 to ease bearish pressure and above $1.1747 to confirm a break of the channel top and target $1.1872-97
RES 4: $1.1793 High Jan 15
RES 3: $1.1747 Hourly resistance Jan 15
RES 2: $1.1675 Falling daily channel top
RES 1: $1.1649 High Jan 16
LPRICE: $1.1565
SUP 1: $1.1540 Hourly support Jan 21
SUP 2: $1.1460 2015 Low Jan 16
SUP 3: $1.1383 Monthly low Nov 7 2003
SUP 4: $1.1137 Low Sept 12 2003
The $1.5274 resistance level confirmed its significance last week with GBP/USD correcting sharply lower from this level to reconfirm immediate focus on $1.5023 and overall focus on the $1.4818 2013 low. In saying that, bulls take some comfort from the bounces on approach to the $1.5023 level with a close below needed to target $1.4818. The $1.5276-33 region remains key resistance with a close above to end bearish hopes and target $1.5486-1.5622.
RES 4: $1.5322 38.2% Fibonacci retracement 1.5788-1.5034
RES 3: $1.5300 21-DMA
RES 2: $1.5274 High Jan 6
RES 1: $1.5200 Hourly resistance Jan 20
LPRICE: $1.5155
SUP 1: $1.5118 Alternating hourly support/resistance
SUP 2: $1.5057 Low Jan 20
SUP 3: $1.5023 Low July 15 2013
SUP 4: $1.4818 2013 Low July 9 2013
Time spent above the 55-DMA (¥118.37) has been brief with the USD/JPY correcting sharply lower from ahead of the 21-DMA. The correction lower shifts immediate focus to the ¥116.83 support with bears needing a close below to confirm focus on the ¥115.44-85 region. The 21-DMA remains key resistance with bulls needing a close above to end bearish hopes and shift immediate focus to retests of 2014 highs and overall focus back to the ¥124.16 2007 high. The Bollinger band base (¥116.50) is seen as the key concern for bears and is expected to limit follow through.
RES 4: ¥119.32 High Jan 12
RES 3: ¥118.95 21-DMA
RES 2: ¥118.85 High Jan 13 & 20
RES 1: ¥117.96 Alternating daily support/resistance
LPRICE: ¥117.83
SUP 1: ¥117.65 Hourly support Jan 21
SUP 2: ¥116.83 Hourly resistance Jan 16 now support
SUP 3: ¥115 85 2015 Low Jan 16
SUP 4: ¥115 57 Monthly Low Dec 16
The recovery from just short of 2014 lows has stalled ahead of layers of resistance with bears firmly focused on the 2014 low and then daily and weekly Bollinger bands below. Layers of resistance remain in the ¥137.67-141.76 region. Bulls now need a close above ¥138.06 to confirm an easing of bearish pressure and above ¥138.93 to shift focus back to the key ¥140.16-141.76 region where key DMAs and the 38.2% Fibonacci retracement are located
RES 4: ¥140.16 200-DMA
RES 3: ¥138.93 Hourly resistance Jan 14
RES 2: ¥138.06 Hourly support Jan 14 now resistance
RES 1: ¥137.64 High Jan 20
LPRICE: ¥136.29
SUP 1: ¥134.71 Low Jan 16
SUP 2: ¥134.14 2014 Low Oct 16
SUP 3: ¥133.59 Bollinger band base
SUP 4: ¥132.44 Weekly Bollinger band base
EUR/GBP remains heavy with initial resistance now noted at £0.7695 and immediate focus on making fresh 7 year lows. The £0.7746-87 resistance region remains key this week with bulls needing a close above to end bearish hopes and shift focus to layers of resistance in the £0.7832-0.7875 region where key DMAs are located. While £0.7746 caps bears favour a break lower that initially targets £0.7517 with the Bollinger band base the key concern for bears.
RES 4: £0.7787 Falling daily channel top
RES 3: £0.7783 21-DMA
RES 2: £0.7746 High Jan 15
RES 1: £0.7695 High Jan 20
LPRICE: £0.7629
SUP 1: £0.7595 2015 Low Jan 16
SUP 2: £0.7517 Low Feb 26 2008
SUP 3: £0.7392 Monthly Low Jan 25 2008
SUP 4: £0.7239 High Dec 12 2007 now resistance