EUR/USD: Studies Stretched/Neutral As Boll Bands Widen. The pair broke above the daily Bollinger band top, yesterday, but now trades back within. Daily tech studies suggest the pair is overbought, while fast 10-day Momentum remains neutral. Initial support seen at $1.2978, the 23.6% Fibonacci of the move higher from $1.2662 to $1.3076, bears will focus on a break below here. The upper daily Bollinger band provides initial resistance at $1.3087.
RES 4: $1.3284 High May 1
RES 3: $1.3172 High Sept 17
RES 2: $1.3109 Trendline from Sep 17 high
RES 1: $1.3087 Upper Bollinger Band
LATEST PRICE: $1.3055
SUP 1: $1.2978 23.6% Fibonacci of $1.2662-1.3076
SUP 2: $1.2915/18 55-DMA, 38.2% Fibonacci of $1.2662-1.3076
SUP 3: $1.2856/69 21-DMA, 50.0% Fibonacci of $1.2662-1.3076
SUP 4: $1.2791 200-day moving average
GBP/USD: Weekly Studies Bullish As Daily Boll Band Widens. GBP trades towards the daily Bollinger band top, initial resistance at $1.6113 alongside the 61.8% of $1.6309 to $1.5829. Daily studies remain bullish, although slow stochastics looks stretched. Weekly studies are also bullish. Further resistance seen around $1.6175 to $1.6196, the highs of Nov 1 and Oct 17 and the 76.4% of $1.6309 to$1.5829. Support seen at $1.6049/51, the 55 and 5-day moving averages.
RES 4: $1.6309 2012 high Sep 21
RES 3: $1.6218 High 5 Oct
RES 2: $1.6175/78/96 High Nov 1, High Oct 17, 76.4% of $1.6309-1.5829
RES 1: $1.6113/26 Daily Bollinger band top, 61.8% of $1.6309-1.5829
LATEST PRICE: $1.6096
SUP 1: $1.6049/51 55 and 5-day moving averages
SUP 2: $1.6012 Former 38.2% of $1.6309 to $1.5829
SUP 3: $1.5965/78 21-day moving average, High 22 Nov
SUP 4: $1.5932/54 100-day moving average, 100-week moving average
USD/JPY: Daily Studies Slide, Weekly Studies Stretched. The pair continues to fade after hitting the recent high at Y82.84 on Nov 22, initial resistance alongside the 38.2% Fibonacci ofY94.99 to Y75.35 and the Apr 4 high. Daily tech studies are bearish while weekly studies remain bullish, albeit near overbought levels. Initial support seen at Y81.76/95, the Nov 20 high and 23.6% Fibonacci of Y79.08 to Y82.84. A break and close below here will encourage bears.
RES 4: Y83.94 High 16 Mar
RES 3: Y83.30 High 2 Apr
RES 2: Y83.13 Resistance line from 6 Apr, 2011
RES 1: Y82.84/85/94 High Nov 22, 38.2% of Y94.99 to Y75.35, High 4 Apr
LATEST PRICE: Y82.12
SUP 1: Y81.76/95 High 20 Nov, 23.6% Fibonacci of Y79.08 to Y82.84
SUP 2: Y81.27 21-day moving average
SUP 3: Y80.96 Kijun Line
SUP 4: Y80.40 38.2% Fibonacci of Y79.08 to Y82.84
EUR/JPY: Daily Momentum Study Shows Bear Divergence. EUR/JPY now trades above the Ichimoku cloud on the weekly chart and also the 100-week moving average. Initial support seen at Y106.47, the daily Tenkan line also Y106.67 and Y106.74, the former being the weekly Ichimoky cloud top and the latter the 100-week MA. However, fast 10-day momentum shows bear divergence and daily slow stochastics looks overbought. Bears look to break below initial support.
RES 4: Y111.44 High Mar 21
RES 3: Y108.00 High Apr 20
RES 2: Y107.67 High Nov 30
RES 1: Y107.21 76.4% Fibonacci of Mar/Jul decline
LATEST PRICE: Y107.16
SUP 1: Y106.47/67/74 Tenkan Line, Weekly Ichimoku Cloud top, 100-week MA
SUP 2: Y105.94 23.6% Fibonacci of Y100.33 to Y107.67
SUP 3: Y105.43 Former Sep 17 res line – now support
SUP 4: Y104.71/87 Former 61.8% Mar-Jul fall, 38.2% of Y100.33 to Y107.67
EasyForexNews Research Team