EUR/USD: Approaching One-Year Resistance Line. Euro-dollar is approaching a resistance line from Aug 29 2011, which is valued at $1.2677 and declining 7 pips/day. However, a dip in 10-day momentum study and overbought readings in the daily stochastic study implies risk of a fade, while interim resistance is at $1.2638 high and 50&% retracement level at $1.2666. Main support is from the 21-day moving average, early Aug high and a trendline at $1.2444/45.
RES 4: $1.2727/43 23.6% of $1.4940-$1.2043, Channel top
RES 3: $1.2677/93 Resistance line 29 Aug, High 29 June
RES 2: $1.2666/71 50% retracement of May/Jul decline, Bollinger band
RES 1: $1.2638 High 31 Aug
LATEST PRICE: $1.2541
SUP 1: $1.2465 Low 28 Aug
SUP 2: $1.2444/45 Early August high, 21-DMA, Support line from 25 July
SUP 3: $1.2384 55-day moving average
SUP 4: $1.2242 Low 10 Aug
GBP/USD: Gains Held At Fibonacci Level. GBP corrected back into it’s Bollinger band, now at $1.5940, with the move accompanied by a downturn in the daily studies. This comes after a test of Fibonacci level at $1.5908. Support is from the 5-DMA at $1.5855 then the 21-DMA at 1.5772. Looking at Fibonacci support levels, while $1.5913 remains the high, main levels are at $1.5701/14, $1.5686, $1.5632/53/67, $1.5591 (main) and also $1.5515.
RES 4: $1.6115 Low 7 May
RES 3: $1.6058/62 76.4% retracement, High 2 April
RES 2: $1.6015 Implied Channel top
RES 1: $1.5908/13 61.8% retracement of May/Jun decline, High 23 Aug
LATEST PRICE: $1.5864
SUP 1: $1.5772 21-day moving average
SUP 2: $1.5729/42 200, 100-day moving average
SUP 3: $1.5647/63 Support line 12 July, 55-day moving average
SUP 4: $1.5637 Low 16 Aug
USD/JPY: Focus on Support Line, Ichomoku Cloud. The pair pulled away from the Y78.72/79.14 Ichimoku cloud as daily studies delivered negative signals. This has bear’s attention on the Y78.09 support line from 1 June, although bulls are looking at signs of a recovery in the daily studies to build a recovery of that Ichimoku cloud. Initial resistance is the Tenkan line of the Ichimoku studies, at Y78.52.
RES 4: Y79.66 High 20 Aug
RES 3: Y79.30 200, 100-day moving average
RES 2: Y79.14 Top of Ichimoku cloud
RES 1: Y78.72/80/96 Base of Ichimoku cloud, Kijun line, 55-DMA
LATEST PRICE: Y78.42
SUP 1: Y78.19 Low 31 August, 3 September
SUP 2: Y78.00/09 Bollinger band, Support line from 1 June
SUP 3: Y77.74 1% Moving average envelope
SUP 4: Y77.66 Low 1 June
EUR/JPY: Studies Soft but Bulls Recover Declining Ichimoku Cloud. Bear-divergence signals on daily studies continues to remain in place, with 10-day momentum now in negative territory. Bulls need to hold above the Ichomoku cloud top of Y98.13 in the face of these signals to avoid a move through Y97.75/93 21-DMA & support line towards the cloud base of Y96.75. Recent highs of Y99.03/19 form initial resistance. Fibonacci levels are at Y97.86, Y97.46/56, Y97.25, Y97.05 (main), Y96.55/65 and also Y96.05.
RES 4: Y101.40 High 29 June
RES 3: Y99.67 76.4% of July pullback, 100-day moving average
RES 2: Y99.50/60 1% MAE, Bollinger band
RES 1: Y99.03/19 High 31, 21 Aug
LATEST PRICE: Y98.25
SUP 1: Y98.13 Ichimoku cloud top
SUP 2: Y97.75/93 55, 21-day moving average, Minor support line
SUP 3: Y97.06 Kijun line
SUP 4: Y96.75 Base of the Ichimoku cloud
EasyForexNews Research Team