EUR/USD: Topside So Far Capped Ahead Of $1.3273 Fibonacci. Gains so far capped ahead of $1.3273, 76.4% of $1.3308 to $1.3159 move. Whilst this caps, the m/t risks remain skewed lower in the wake of last week’s dragon-fly doji candlestick formation and given the daily studies continue to reverse from overbought territory. Initial support seen at 5-day moving average at $1.3209
RES 4: $1.3405 61.8% of $1.4247 to $1.2043
RES 3: $1.3386 High 27 Mar
RES 2: $1.3308/$1.3329 High 19 Dec, Daily Bollinger band top,
RES 1: $1.3273 76.4% of $1.3308 to $1.3159
LATEST PRICE: $1.3264
SUP 1: $1.3209 5-day moving average
SUP 2: $1.3127/$1.3156 Reversal High Dec 5, 23.6% of $1.2662 to $1.3308
SUP 3: $1.3107 21-day moving average
SUP 4: $1.3067 Low 14 Dec
GBP/USD: Stochastic Study Shows Bearish Divergence Signal. The daily stochastic study continues to ease lower in sell-mode and now showing bearish divergence signal. Also noted is the double-top pattern at $1.6307/09, which continues to take shape, implying risk of further correction lower. Support is at $1.6101 and breaks sees slide extend to $1.6051/68.
RES 4: $1.6302/$1.6307/$1.6309 Apr 30 high,High Dec 19 2012, high Sep 21
RES 3: $1.6273/$1.6274 High Sep 28, daily Bollinger band top
RES 2: $1.6204 50.0% of $1.6307 to $1.6101
RES 1: $1.6171 High Dec 26
LATEST PRICE: $1.6160
SUP 1: $1.6101 Low Dec 24
SUP 2: $1.6051/68 55-day moving average, 50.0% of $1.5829 to $1.6307
SUP 3: $1.6022 100-day moving average
SUP 4: $1.5962 Low Nov 28
USD/JPY: Upside Focus On Y85.94 Resistance. Bulls remain in control following recent break above 200-week moving average and from here, there is very little resistance until Y85.94, current value of resistance line from 25 Oct, High 17 Sep 2010 and Bollinger band top. Whilst the daily studies are overbought, the risk is that this may persist. The medium-term outlook remains constructive as long as price action stays above the Tenkan line, valued at Y84.74.
RES 4: Y87.22 55-month moving average
RES 3: Y86.84 23.6% of Y124.14 to Y75.32
RES 2: Y86.35 2.00% moving average envelope
RES 1: Y85.94 Res line from 25 Oct, High 17 Sep 2010, Bollinger band top
LATEST PRICE: Y85.72
SUP 1: Y84.94/85.06 High Dec 24/25, 5-day moving average
SUP 2: Y84.74 Tenkan Line of Ichimoku
SUP 3: Y83.78/86 Kijun line of Ichimoku cloud, Low 20, 21 Dec
SUP 4: Y83.50 21-day moving average
EUR/JPY: Bulls Eye Aug 2011 High At Y114.18. The upside remains the least course of resistance, with not much resistance noted until Y114.18, the Aug 4, 2011 high. Above here, the widening daily Bollinger band top is valued at Y114.36 and nothing significant until the 200-week moving average at Y114.98.
RES 4: Y116.42/44 50% of Y138.70-Y94.14, 76.4% of Y123.33 to Y94.12
RES 3: Y114.98 200-week moving average
RES 2: Y114.36 Daily Bollinger band top
RES 1: Y114.18 High 4 Aug, 2011
LATEST PRICE: Y113.83
SUP 1: Y112.35 5-day moving average
SUP 2: Y112.01/02 Highs 24/25 Dec
SUP 3: Y111.85 Tenkan line of Ichimoku cloud
SUP 4: Y110.63 Low Dec 21
EasyForexNews Research Team