EUR/USD: Monthly Studies Bullish, Another New High At $1.3587. EUR/USD squeezes higher, testing the upper limits of the daily Bolli band. Daily stochastic looks stretched, however the monthly chart shows the pair range-trading, the 100-month MA the base at $1.2049, but eur-dol is halfway to the top, a res line from Jul 2008 at $1.4294. Monthly and weekly studies are bullish, initial res at $1.3587, Jan 30 high. Bears require a test of the Jan 10 S-T supp line at $1.3419 if they wish to pause the bullish trend.
RES 4: $1.3833/37 61.8% of $1.4940 to $1.2043, Reversal low Jul 2012
RES 3: $1.3690 High Sep 28
RES 2: $1.3622 Upper daily Bollinger band
RES 1: $1.3587 High Jan 30
LATEST PRICE: $1.3570
SUP 1: $1.3510 5-day moving average
SUP 2: $1.3404/10/19 High Jan 14, Supp line Jan 10, 23.6% of $1.2877-1.3587
SUP 3: $1.3378 100-week MA
SUP 4: $1.3312/16 21-DMA, 38.2% of $1.2877-1.3587
GBP/USD: Rises Above S-T Res Line, Bulls Look To Push Higher. GBP rises above the short-term Jan 2 resistance line, now initial support just above the 5-DMA at $1.5773/75. Daily studies have reversed higher and if the pair holds above this former res line we may see bulls push up to the 23.6% of $1.6381-1.5675, resistance at $1.5842 alongside the 200-week MA at $1.5855. The medium-term target is seen at $1.6433, this being the res line from Aug 2009. Cable has traded under this level for 3 years.
RES 4: $1.5945/49 21-DMA & 38.2% of $1.6381-1.5675, 100-week MA
RES 3: $1.5882/97 55-week MA, 200-DMA
RES 2: $1.5842/55 23.6% of $1.6381-1.5675, 200-wk MA
RES 1: $1.5829 Low 15 Nov
LATEST PRICE: $1.5808
SUP 1: $1.5773/75 5-DMA, S-T Jan 2 res line, Low Jan 23
SUP 2: $1.5746/55/57 Low Jan 25, Low Aug 28, Low Jan 24
SUP 3: $1.5694 61.8% of $1.5269-1.6381
SUP 4: $1.5658/75 Lower daily Bolli band, Low Jan 28
USD/JPY: Holds Above Dec 21 Supp Line, Studies Slowing. USD/JPY leaves another fresh high but 10-day momentum is sharply lower today while daily slow stochastic study may soon form a sell-signal in overbought territory. Weekly studies are also slowing and, if dol-yen fails to make a significant move before the end of the week, has the potential to form an evening star candle pattern. Bulls look to break above Y91.41 with eyes on the 38.2% level at Y93.99. Bears look to break below the Dec 21 supp line at Y90.49.
RES 4: Y94.99 May 2010 reversal high
RES 3: Y93.99 38.2% Fibonacci of Y124.14 to Y75.35
RES 2: Y92.53 3.00% MA Envelope
RES 1: Y91.41/64 High Jan 30, 2.00% MA envelope
LATEST PRICE: Y90.94
SUP 1: Y90.49 Dec 21 support line
SUP 2: Y89.74 Tenkan line
SUP 3: Y89.09/12/26 Low Jan 14, 23.6% of Y81.69-91.41, 21-DMA
SUP 4: Y88.45 Kijun line
EUR/JPY: Fresh High Encourages Bulls But Studies Slowing. EUR/JPY pushing higher despite the stretched studies, 10-day momentum is now sharply lower and weekly momentum is dipping from its highest since Apr 2009. However monthly studies are still firmly bullish. Initial res now seen as the Jan 30 high at Y123.86 alongside the 3.00% MA envelope at Y123.92. A break above here looks good for bulls, but bears eye the Tenkan line at Y120.46. Initial supp seen at Y122.72/91, the 2.00% MA env and Jan 28 high.
RES 4: Y132.04/25 50.0% of Y169.96-Y94.12, 100-month MA
RES 3: Y127.91 Reversal high April 2010
RES 2: Y125.24 Reversal high Feb 2010
RES 1: Y123.86/92 High Jan 28, 3.00% MA envelope
LATEST PRICE: Y123.29
SUP 1: Y122.72/91 2.00% MA envelope top, High Jan 28
SUP 2: Y121.22 Low Jan 29
SUP 3: Y120.46/61/71 Tenkan line, High Jan 17, 18
SUP 4: Y119.64 23.6% of Y105.98-123.86
EasyForexNews Research Team