EUR/USD: 10-Day Momentum Shows Negative Divergence. The pair broke through $1.3100 but has failed to sustain a move higher, now 10-day momentum study shows negative divergence and slow stochastics is in overbought territory. Initial support seen at $1.3098/3148, the former May 1 trendline and 5-DMA. Bears will target the former trendline, however weekly tech studies remain bullish. Bulls eye the upper daily Bollinger band at $1.3199, initial resistance.
RES 4: $1.3386 High Mar 27
RES 3: $1.3346 Weekly upper Bollinger band
RES 2: $1.3283/3284 Former Nov 21 support line – now res, High May 1
RES 1: $1.3199 Upper Bollinger Band
LATEST PRICE: $1.3171
SUP 1: $1.3098/3130 May 1 trendline, 5-DMA
SUP 2: $1.3002 21-day moving average
SUP 3: $1.2939 55-day moving average
SUP 4: $1.2855 Jul 24 support line
GBP/USD: Bulls Eye Apr 2011 Res Line, Bears Eye Nov 16 Supp Line. The cross creeps up to the Apr 2011 resistance line, our key resistance level at $1.6235. A break above here would open the topside to further gains. However, ahead of here we see initial resistance at $1.6218/6222, the Oct 5 high and upper daily Bollinger band. Daily studies are still bullish, however studies are stretched and stochastics is overbought. Bears will try and test the Nov 16 supp line at $1.6081
RES 4: $1.6573 Reversal high 23 Aug 2011
RES 3: $1.6302/6309 Apr 30 high, 2012 high Sep 21
RES 2: $1.6235 Apr 2011 res line
RES 1: $1.6218/6222 High 5 Oct, Upper daily Bollinger band
LATEST PRICE: $1.6215
SUP 1: $1.6171 5-day moving average
SUP 2: $1.6066/6081 21-DMA, Nov 16 support line
SUP 3: $1.6037 55-day moving average
SUP 4: $1.5891 100-day moving average
USD/JPY: Bulls Eye Dec 2010 Reversal High At Y84.51. USD/JPY trades just above initial support, a key support level at Y83.82, the 23.6% Fibonacci of Y81.69 to Y84.48. A break below here could see the pair turn bearish and open the downside for a move to the Tenkan line. Bulls will aim to return to yesterday’s high and also the 15 Dec 2010 reversal high, initial resistance at Y84.48 and Y84.51. Daily studies still bullish, but stochastics is overbought.
RES 4: Y85.93 High 17 Sep 2010
RES 3: Y85.53 Reversal high 6 Apr
RES 2: Y85.01 200-week MA
RES 1: Y84.48/51 Dec 17 high, Reversal high 15 Dec 2010
LATEST PRICE: Y84.00
SUP 1: Y83.82 23.6% of Y81.69 to Y84.48
SUP 2: Y83.30/41 Tenkan line, 38.2% of Y81.69 to Y84.48
SUP 3: Y83.09 50.0% of Y81.69 to Y84.48
SUP 4: Y82.57/61/76 Frmer Nov 22 res line, 21-DMA, 61.8% of Y81.69-84.48
EUR/JPY: Daily studies Bullish Albeit Overbought. The pair recovers some of its losses from yesterday, as bulls strive to regain the highs of Dec 17 and Mar 21, initial res at Y111.32/44. A break above here will open the top up to Y112.17. However momentum fails to match the highs made by the recent price gains, which adds caution to bulls. Bears will target a move down to the Nov 13 support line at Y107.76. Ahead of here, support seen at Y108.65/73.
RES 4: Y115.47 123.6% of Y111.42 to Y94.28
RES 3: Y115.03 200-week moving average
RES 2: Y112.17 61.8% of Y123.33 to Y94.12
RES 1: Y111.32/44 High Dec 17, High Mar 21
LATEST PRICE: Y110.73
SUP 1: Y108.65/73 Tenkan line, 23.6% Fibonacci of Y100.33 to Y111.32
SUP 2: Y107.96/108.00 High Dec 5, High Apr 20
SUP 3: Y107.41/76 21-DMA, Support line from Nov 13
SUP 4: Y106.67/71 Weekly Ichimoku Cloud top, 100-week MA
EasyForexNews Research Team