EUR/USD: Gravestone Doji Warns Of Correction Lower. Last week’s gravestone doji candlestick and reversal in daily Stochastic study from overbought territory, which is on verge of a sell-signal, leaves risk of a correction lower. Initial support is at $1.3127/56 area, where latter is the 23.6% of $1.2662 to $1.3308 move. Initial resistance is at 5-day moving average at $1.3221.
RES 4: $1.3346 Weekly upper Bollinger band
RES 3: $1.3308 High Dec 19
RES 2: $1.3293 Upper Bollinger Band
RES 1: $1.3221 5-day moving average
LATEST PRICE: $1.3220
SUP 1: $1.3127/$1.3156 Reversal High Dec 5, 23.6% of $1.2662 to $1.3308
SUP 2: $1.3070 21-day moving average
SUP 3: $1.2942/57 Support line from Nov 13, 55-day moving average
SUP 4: $1.2877 Low 7 Dec
GBP/USD: Double-Top Pattern At $1.6307/09 Taking Shape. Double-top pattern at $1.6307/09 is taking shape and reversal in daily stochastic study from overbought territory, implies risk of further correction lower. Support is at $1.6117/24 area, which is the 21-day moving average and latter the value of support line from Nov 16. Break below here is seen extending move to $1.6046/68.
RES 4: $1.6427 High April 2011
RES 3: $1.6302/$1.6307/$1.6309 Apr 30 high,High Dec 19 2012, high Sep 21
RES 2: $1.6273/$1.6281 High Sep 28, Upper daily Bollinger band
RES 1: $1.6228 5-day moving average
LATEST PRICE: $1.6197
SUP 1: $1.6117/24 21-DMA, 38.2% of $1.5829-$1.6307, Sup line fm Nov 16
SUP 2: $1.6046/68 55-day moving average, 50.0% of $1.5829 to $1.6307
SUP 3: $1.6007 100-day moving average
SUP 4: $1.5962 Low Nov 28
USD/JPY: Key Resistance Is At 200-Week Moving Average. Dollar remains in buoyant mood and threatening another test of recent high at Y84.62. Key resistance is at the 200-week moving average at Y84.94 and needs to break above here to extend gains towards April 6 high at Y85.53. Initial support is at Y83.86 ahead of Y83.50/54 area, where the latter is the Tenkan line of the Ichimoku cloud.
RES 4: Y85.93 High 17 Sep 2010
RES 3: Y85.53 Reversal high 6 Apr
RES 2: Y84.94 200-week moving average
RES 1: Y84.62 Dec 19 high
LATEST PRICE: Y84.44
SUP 1: Y83.86 Low 20, 21 Dec
SUP 2: Y83.50/54 38.2% of Y81.69 to Y84.62, Tenkan Line of Ichimoku
SUP 3: Y83.15 50.0% of Y81.69 to Y84.62
SUP 4: Y82.85/91 Kijun line, 61.8% Y81.69-84.48, 23.6% Y77.13-84.62
EUR/JPY: Double Fibonacci At Y111.97 & Y112.17 Key Resistance. Fibonacci levels at Y111.97, 23.6% of Y169.75-Y94.12, Y112.17, 61.8% of Y123.33 to Y94.12 remain key despite recent breaks. Failure to close above here along with overbought readings on daily studies implies risk of correction lower. However, on longer-term charts, focus remains on the 200-week moving average at Y114.98.
RES 4: Y114.98 200-week moving average
RES 3: Y114.18 High 4 Aug, 2011
RES 2: Y112.71 High Aug 8, 2011
RES 1: Y112.17/50 61.8% of Y123.33 to Y94.12, Dec 19 high
LATEST PRICE: Y111.53
SUP 1: Y110.63 Low Dec 21
SUP 2: Y109.93/98/110.01 Low Dec 17, High Dec 14, 38.2% Y105.98-112.50
SUP 3: Y109.88 Tenkan line of Ichimoku cloud
SUP 4: Y109.63 23.6% of Y100.33 to Y112.50
EasyForexNews Research Team