EUR/USD: Bear-Divergence Signals On Daily Studies Warns. Daily studies continue to show bear-divergence signals and last week’s dragon-fly doji candlestick formation warns of a correction lower. Support is seen at 5-day moving average, which comes in at $1.3216 and $1.3127/$1.3156 below, where the latter is the 23.6% of $1.2662 to $1.3308 move.
RES 4: $1.3386 High 27 Mar
RES 3: $1.3337 Daily Bollinger band top
RES 2: $1.3308 High 19 Dec
RES 1: $1.3295 High 20 Dec
LATEST PRICE: $1.3252
SUP 1: $1.3216 5-day moving average
SUP 2: $1.3127/$1.3156 Reversal High Dec 5, 23.6% of $1.2662 to $1.3308
SUP 3: $1.3119 21-day moving average
SUP 4: $1.3067 Low 14 Dec
GBP/USD: Bear-Divergence Signals & Double-Top Pattern Noted. 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 comes in at $1.6051/68, where former is the 55-day moving average.
RES 4: $1.6302/$1.6307/$1.6309 Apr 30 high,High Dec 19 2012, high Sep 21
RES 3: $1.6273/$1.6266 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: $1.6112
SUP 1: $1.6051/68 55-day moving average, 50.0% of $1.5829 to $1.6307
SUP 2: $1.6025 100-day moving average
SUP 3: $1.5962 Low Nov 28
SUP 4: $1.5896 200-day moving average
USD/JPY: Key Upside Target Is Y86.84 Fibonacci Level. Price action briefly breached the 2.00% moving average envelope at Y86.59 and another push higher to test Y86.84, 23.6% of the decline from June 2007 high to Oct 2011 low, can’t be ruled out. Whilst the daily studies are overbought, the risk is that this may persist.
RES 4: Y88.11 High July 28, 2010
RES 3: Y87.23 55-month moving average
RES 2: Y86.84 23.6% of Y124.14 to Y75.32
RES 1: Y86.59/64 2.00% moving average envelope, Hourly high
LATEST PRICE: Y86.20
SUP 1: Y85.52 5-day moving average
SUP 2: Y85.23 Tenkan Line of Ichimoku
SUP 3: Y84.94 High Dec 24/25
SUP 4: Y84.17 Kijun line of Ichimoku cloud
EUR/JPY: Approaching Key Resistance Area At Y114.97/115.00. The upside remains the least course of resistance, with not much resistance noted until Y114.97/Y115.00 area, which is the value of the daily Bollinger top and the 200-week moving average. Risk is on a fade here as daily studies begin look overbought.
RES 4: Y117.88 High 7 June 2011
RES 3: Y117.23 38.2% of Y123.32-Y113.52
RES 2: Y116.42/44 50% of Y138.70-Y94.14, 76.4% of Y123.33 to Y94.12
RES 1: Y114.97/115.00 Bollinger band top, 200-week moving average
LATEST PRICE: Y114.15
SUP 1: Y113.00 5-day moving average
SUP 2: Y112.52 Tenkan line of Ichimoku cloud
SUP 3: Y112.01/02 Highs 24/25 Dec
SUP 4: Y110.63 Low Dec 21
EasyForexNews Research Team