Sideways trading within a $1.1260-1.1451 range has dominated for the past two weeks with a break of either side dictating the next move. Since closing above the 21-DMA ($1.1355) last week the EUR/USD hasn’t managed a close below which provides bulls with some hope. Initial support is noted at $1.1346 with bears needing a close below to confirm a break of the 21-DMA and focus on the key $1.1260 support
RES 4: $1.1680 High Jan 21
RES 3: $1.1661 38.2% Fibonacci retracement 1.2571-1.1098
RES 2: $1.1541 Low Jan 21 now resistance
RES 1: $1.1450 High Feb 19
PRICE: $1.1377
SUP 1: $1.1346 Hourly support Feb 20
SUP 2: $1.1279 Low Feb 20
SUP 3: $1.1260 Low Jan 28
SUP 4: $1.1224 Low Jan 27
The $1.5468-86 region confirmed significance last week with GBP/USD retreating to test the 55-DMA on Friday. $1.5316 & $1.5486 are key levels this week with bears needing a close below $1.5316 to confirm a break of the 55-DMA and shift immediate focus to the $1.5200-57 region. While $1.5316 supports a bullish bias remains with bulls needing a close above $1.5486 to confirm overall focus on the $1.5587-1.5622 region where the 100-DMA is located.
RES 4: $1.5622 High Dec 31
RES 3: $1.5587 100-DMA
RES 2: $1.5486 Previous daily support now resistance
RES 1: $1.5468 61.8% Fibonacci retracement 1.5788-1.4951
PRICE: $1.5385
SUP 1: $1.5344 55-DMA
SUP 2: $1.5316 Low Feb 17
SUP 3: $1.5257 21-DMA
SUP 4: $1.5200 Low Feb 9
Bulls have so far been unable to capitalize on recent bounces from the 21-DMA with bears needing a close below the channel base to end bullish hopes and target ¥115.45-116.26. Overall the ¥115.45-57 region remains key support with a close below needed to shift focus back to the 200-DMA (¥109.84). Bulls need a close above ¥119.43 to provide breathing space and confirm bullish focus on the ¥120.48-121.17 region where the daily channel top is located.
RES 4: ¥121.17 Rising daily channel top
RES 3: ¥120.78 2015 High Jan 2
RES 2: ¥120.48 High Feb 11
RES 1: ¥119.43 High Feb 17
PRICE: ¥118.96
SUP 1: ¥118.80 Alternating hourly support/resistance
SUP 2: ¥118.46 21-DMA
SUP 3: ¥118.06 Rising daily channel base
SUP 4: ¥116.66 Low Feb 2
Since closing above the 21-DMA two weeks ago the EUR/JPY has been unable to manage a close below with bounces back towards the key ¥136.72 resistance resulting. Friday’s dip saw a low of ¥133.55 with this level key this week and bears needing a close below to confirm a break of the 21-DMA and a shift in overall focus to the ¥129.97 level. While the 21-DMA supports a slight bullish bias remains with initial focus on the key ¥136.72 resistance and a close above targeting ¥138.94-140.73 where key DMAs are located
RES 4: ¥139.40 200-DMA
RES 3: ¥138.94 High Jan 14
RES 2: ¥137.65 High Jan 20, 38.2% Fibo 149.80-130.02
RES 1: ¥136.72 High Feb 12
PRICE: ¥135.38
SUP 1: ¥135.20 Hourly support Feb 23
SUP 2: ¥134.66 Hourly support Feb 20
SUP 3: ¥134.58 21-DMA
SUP 4: ¥133.55 Low Feb 20
The significance of the £0.7462 resistance was confirmed recently with the EUR/GBP pulling back from ahead of this region to record fresh 2015 and 7+ year lows again Friday. The Bollinger band bases are seen as key concerns for bears and may limit follow through as bears remain focused on £0.7239. Bulls continue to look for a close above £0.7462 to confirm a break of the 21-DMA and an easing of bearish pressure and to hint at a bounce that targets the £0.7595 level.
RES 4: £0.7595 Low Jan 16 now resistance
RES 3: £0.7520 Hourly support Feb 2 now resistance
RES 2: £0.7462 High Feb 9
RES 1: £0.7445 21-DMA
PRICE: £0.7394
SUP 1: £0.7340 2015 Low Feb 20, Bollinger band base
SUP 2: £0.7316 Weekly Bollinger band base
SUP 3: £0.7239 High Dec 12 2007 now resistance
SUP 4: £0.7114 Low Dec 17 2007