EUR/USD: Bullish Engulfing Candle Pattern Encourages Bulls. The pair follow daily studies higher and breaks above former initial res to challenge the Feb 1 res line and 100-DMA, new initial res at $1.3114/28, respectively. Wkly studies are bearish, but mthly studies are bullish and the bullish engulfing candle pattern formed yesterday could spark a reversal higher. A break and close above the Feb 1 res line would skew risk to the upside. Bears look to retest the March lows to hang onto the bearish trend.
RES 4: $1.3250 38.2% of $1.3711-1.2965
RES 3: $1.3209 21-day moving average
RES 2: $1.3141/45/50 23.6% $1.3711-1.2965, Low Feb 22, 38.2% $1.4940/1.2043
RES 1: $1.3114/28 Res line from Feb 1, 100-DMA
Latest price: $1.3091
SUP 1: $1.3075/80 Mar 5 and 6 highs
SUP 2: $1.3049 5-day moving average
SUP 3: $1.2965/67 Lows Mar 6 and 1
SUP 4: $1.2922 55-week MA
GBP/USD: Measured Move Targets $1.4795, Positive Divergence On 10-Day Mom. The cross leaves a doji with a lower low and lower high, despite positive divergence seen in 10-day momentum. Daily slow stochastic and 14-day RSI continue to trend sideways. Initial res seen as 5-DMA at $1.5054, alongside the lows of Feb 25/27 at 1.5073/81, however bears eye the Mar 7 low at $1.4967 as the break of the rising triangle still targets $1.4795. Wkly and mthly studies are also bearish, further supp at $1.4855, the 61.8% $1.3503-1.7043.
RES 4: $1.5219/22/35 Feb 26 high, Feb 28 high, Reversal low Jan 2012
RES 3: $1.5199 High Mar 5
RES 2: $1.5157/63 Lower Mthly Bolli band, Lower wkly Bolli
RES 1: $1.5054/73/81 5-DMA, Low Feb 25, 27
Latest price: $1.4995
SUP 1: $1.4967 Mar 7 low
SUP 2: $1.4855 61.8% of $1.3503-1.7043
SUP 3: $1.4815 Lower daily Bolli band
SUP 4: $1.4784/95 Reversal low Mar 1 2010, Measured move target
USD/JPY: Above Feb 25 High, Bulls Eye Aug 2009 Reversal High At Y97.79. The pair breaks above the Feb 25 high to follow dly and mthly studies higher. Wkly studies were suggesting a reversal, but never declined. Bulls look to test res, seen at Y96.19, the 3.00% MA env. Further res at Y96.43, the former Dec 21 supp line turned res and key res seen at Y97.79, the Aug 2009
reversal high. While we see a return to a bullish trend likely, bears will surely attempt to retest supp, seen at Y94.46/77, the highs of Feb 11 and 25.
RES 4: Y97.79 Aug 2009 reversal high
RES 3: Y97.12 4.00% MA envelope
RES 2: Y96.43 Former Dec 21 support line, now resistance
RES 1: Y96.19 3.00% MA envelope
Latest price: Y95.36
SUP 1: Y94.46/77 Feb 11 high, Feb 25 high
SUP 2: Y93.73/99 High Mar 4, 38.2% of Y124.14-75.35
SUP 3: Y93.73 High Mar 4
SUP 4: Y93.16/29/39 Kijun line, Tenkan line, 21-day moving average
EUR/JPY: Topside Breakout Of Pennant Pattern Targets Move To Y127.17. The cross jumps higher, dismissing several resistance levels to trade above the top of the pennant pattern (former Feb 6 res line), now initial supp at Y123.75 alongside the Jan 30 high at Y123.86. The topside breakout targets a measured move to Y127.17, just below the Feb 6 high of Y127.71, while daily studies rise further and weekly studies strengthen. Initial res now seen at Y125.01/09/24, the Feb 12 low, 2.00% MA envelope and Feb 2010 reversal high.
RES 4: Y126.95/127.17 High Feb 12, Measured move target
RES 3: Y126.32 3.00% MA envelope
RES 2: Y125.90 High Feb 20
RES 1: Y125.01/09/24 Low Feb 12, 2.00% MA envelope, Reversal high Feb 2010
Latest price: Y124.80
SUP 1: Y123.75/86 Res line from Feb 6 high, High Jan 30
SUP 2: Y123.22/33/35/43 Kijun line, Apr 2011 high, 21-DMA, Feb 8 low
SUP 3: Y122.17/58 High Mar 1, 23.6% Y105.98-127.71
SUP 4: Y121.99 Tenkan line
EasyForexNews Research Team