EUR/USD: Potential Bullish Engulfing On Wkly Chart. The pair continues to test the upper daily Bolli band as initial res at $1.3146, while current price action slips above 38.2% level at $1.3112. Dly studies trend higher but 10-day momentum starts flattening and slow stochastic is now overbought. However, weekly chart shows a bullish engulfing pattern about to be confirmed today. Key initial res around $1.3138 to $1.3150, including key 38.2% of $1.4940-1.2043, and initial supp at $1.3076 – the 5-DMA.
RES 4: $1.3341 61.8% of $1.3711 to $1.2743
RES 3: $1.3308 Reversal high Dec 19
RES 2: $1.3227/58 50.0% of $1.3711 to $1.2743, 100-week MA
RES 1: $1.3138-50 Hgh Apr 11, 55-DMA, Dly Boll top, 100-DMA & 38.2% $1.494-1.204
Latest price: $1.3118
SUP 1: $1.3076 5-DMA
SUP 2: $1.3040/44 High Apr 5, Low Apr 11
SUP 3: $1.2965/67/74 Low Mar 6, Low Mar 1, 23.6% of $1.3711 to $1.2746
SUP 4: $1.2938 21-DMA
GBP/USD: Key Resistance At $1.5424, Studies Overbought. The cross broke out of the hourly rising triangle to the upside, price action now meets resistance around the 38.2% of $1.6381-1.4832 at $1.5424 while daily studies continue to trend higher. A break above this key initial res would encourage bulls to target the 38.2% of $2.1161-1.3503, key res at $1.6428 and confirm a dragonfly doji reversal pattern on the monthly chart. However, failure at $1.5424 would send the pair lower. Support at $1.5307/38, the 55 and 5-DMAs.
RES 4: $1.5573 Low Feb 12
RES 3: $1.5531 76.4% of $1.5269-1.6381
RES 2: $1.5485 Reversal low 28 Jun 2012
RES 1: $1.5412/24 High Apr 11, 38.2% of $1.6381-1.4832
Latest price: $1.5395
SUP 1: $1.5307/38 55 and 5-day moving averages
SUP 2: $1.5198/5210/35 23.6% of $1.6381-1.4832, 21-DMA, Weekly low Jan 2012
SUP 3: $1.5105 Support line from Mar 12 low
SUP 4: $1.5022/27/34 Lower daily Bollinger band, Low Mar 20, Low Apr 4
USD/JPY: Holds Above Former Feb 11 Resistance Line. The pair makes another new high while dly studies also hit new highs, but appear to be slowing. 10-day mom moves sideways after hitting its highest reading since Feb 2009. Bulls aim to stay above the Feb 11 former res line, initial supp at Y99.30, while bears aim to break below and test the 23.6% of Y92.57-99.66 at Y98.21. However, wkly and mthly studies appear to be quite bullish and bulls may aim to break above monthly Ichimoku cloud top at Y100.19.
RES 4: Y105.50 61.8% Fibonacci of Y124.14 to Y75.35
RES 3: Y101.45 Reversal high Apr 2009
RES 2: Y100.92 Upper weekly Bollinger band
RES 1: Y99.95/100.19/36 April 11 high, Mthly Ichimoku cloud top, Upper dly Bolli
Latest price: Y99.46
SUP 1: Y99.30 Former resistance line from Feb 11
SUP 2: Y99.04 3.00% MA envelope top
SUP 3: Y98.19/21/29 38.2% Y135.15-75.35, 23.6% of Y92.57-99.66, 100-mth MA
SUP 4: Y97.79 Aug 2009 high
EUR/JPY: Studies Overbought But Still Bullish. EUR hits new high, now at Y131.12 and also initial res, while dly studies rise, albeit now firmly into overbought territory. Bulls aim break above yesterday’s high and perhaps extend gains up to 50.0% Y169.96-Y94.12, still at Y132.04, while bears aim below the Apr 11 high to test the 23.6% of Y119.11 to Y131.12, further support at Y128.29. We note that 10-week momentum study shows negative divergence but weekly slow stochastic shows a buy-signal.
RES 4: Y133.95 123.6% Projection of Y119.11 to Y131.12
RES 3: Y132.04 50.0% of Y169.96-Y94.12
RES 2: Y131.66/87 Upper daily Bollinger band, 100-month MA
RES 1: Y131.12 Apr 11 high
Latest price: 130.48
SUP 1: Y129.34 4.00% MA envelope top
SUP 2: Y128.29 23.6% of Y119.11 to Y131.12
SUP 3: Y128.09 3.00% MA envelope top
SUP 4: Y126.53 38.2% of Y119.12 to Y131.12
EasyForexNews Research Team