EUR/USD: Massive Break Higher And Focus Turns To $1.3308. The pair leaves a long white candle, sending daily studies higher, as the pair bounces from the lower daily Bollinger band to trade just below the Dec 19 high. Bulls will be looking to break above this high and the upper daily Bollinger band, our initial resistance level at $1.3308/09. Further resistance seen at $1.3389, the 100-week MA. However, focus remains on initial resistance to see if bulls can break and move higher.
RES 4: $1.3529 200-week moving average
RES 3: $1.3487/91 High Feb 2012, 50.0% of $1.4940 to $1.2043
RES 2: $1.3389 100-week MA
RES 1: $1.3308/09 High Dec 19, Upper Bollinger Band
LATEST PRICE: $1.3261
SUP 1: $1.3150/56/79 38.2% of $1.4940-1.2043, 23.6% of $1.2662-1.3308, 21-DMA
SUP 2: $1.3049/61/77 Bolli band, 38.2% $1.2662-$1.3308, Former May 1 trendline
SUP 3: $1.2985/95/3004 50.0% $1.2662-1.3308, Jul 24 supp, 55-DMA
SUP 4: $1.2948/49 21-week MA, 100-DMA
GBP/USD: Bulls Turn Cable Around, Eye Jan 2 High At $1.6381. GBP soars higher to break above the former Nov 16 support line and 21-DMA, current price action shows a little consolidation, however daily studies have firmed. Bulls will look to test the former Apr 2011 trendline at $1.6213, if they move above here bulls will likely test the daily Bollinger band top and move up to the Jan 2 high from the gravestone doji. Bears will be looking for support at $1.6103, the 5-DMA.
RES 4: $1.6427 High April 2011
RES 3: $1.6381/6390 High Jan 2, 76.4% of $1.6747 to $1.5235
RES 2: $1.6306 Upper daily Bollinger band
RES 1: $1.6213 Former Apr 2011 Trendline
LATEST PRICE: $1.6151
SUP 1: $1.6103 5-DMA
SUP 2: $1.6065/67 100-DMA, 55-DMA & Low Dec 27
SUP 3: $1.5991/93/6019 50.0% of $1.6747-1.5235, Low Jan 10, Lower Bolli band
SUP 4: $1.5954/59/61 Jun 2012 supp line, 76.4% of $1.5829 to $1.6381, 100-wk MA
USD/JPY: Bulls Break Jan 4 High Look To Close In Monthly Cloud. The cross breaks above the Jan 4 high at Y88.41, now initial support, despite the bearish studies which have now turned higher. Weekly and monthly studies remain bullish but stretched, price action now holds just below the monthly Ichimoku cloud base at Y89.22, however price action has already broken above here and initial res seen at Y89.55, the 3.00% MA envelope top. The new high stands at Y89.35 and a break above here will encourage bulls further.
RES 4: Y98.50 100-month MA
RES 3: Y94.99 May 2010 reversal high
RES 2: Y93.99 38.2% Fibonacci of Y124.14 to Y75.35
RES 1: Y89.22/55 Monthly Ichimoku cloud base, 3.00% MA Envelope
LATEST PRICE: Y89.06
SUP 1: Y88.41 High Jan 4
SUP 2: Y87.94 Tenkan line
SUP 3: Y86.13/47 21-DMA, 23.6% of Y77.13-89.35
SUP 4: Y85.74 Kijun line
EUR/JPY: Busts Through Jan 2 High But Studies Caution Bulls. EUR/JPY soars through the Jan 2 high to test the 55-month MA at Y117.98, price action already broken above but holds below. Daily studies still mixed as they fail to post a new high while price action has galloped higher, cautioning bulls. Initial supp seen at Y116.07, the Tenkan line. Weekly and monthly studies are bullish, albeit stretched, and initial res seen at Y118.59, the hourly high, with further res at Y119.51, the monthly cloud base.
RES 4: Y132.04/20 50.0% of Y169.96-Y94.12, 100-month MA
RES 3: Y123.09/33 38.2% of Y169.96-Y94.12, Apr 2011 reversal high
RES 2: Y119.51 Monthly Ichimoku cloud base
RES 1: Y118.59 Hourly high
LATEST PRICE: Y117.83
SUP 1: Y116.07 Tenkan line
SUP 2: Y115.61 23.6% of Y105.98 to Y118.59
SUP 3: Y114.94 200-week moving average
SUP 4: Y113.50/77 21-DMA, 38.2% of Y105.98 to Y118.59
EasyForexNews Research Team