EUR/USD posts an inside-day with a significant upper shadow, a sign selling pressure remains. The top appears to be capped by the 200-week MA and daily Bolli band top, both at $1.3386, just below the Aug 16 high of $1.3400, all part of key initial res. Continued failure by bulls will encourage bears, initial suppt from $1.3285 to $1.3323, includes Feb 2013 res line, 21 and 5-DMAs, break below targets the 23.6% of $1.2755-1.3400 at $1.3248.
R 4: $1.3474/83 55-month MA
R 3: $1.3444 100-month MA
R 2: $1.3400/16/17 Highs Aug 8, Jun 18, 19
R 1: $1.3380/86 High Aug 16, Daily Bollinger band top & 200-week MA
Latest price: $1.3347
S 1: $1.3285/90/3300/23 Resistance line Feb 2013, 21-DMA, High Aug 5, 5-DMA
S 2: $1.3228/34/48 Low Aug 13
S 3: $1.3200/06/07 High Apr 17, Low Aug 15, High Jul 11
S 4: $1.3154/87 55-DMA
GBP/USD squeezed higher again to remain above $1.5600 despite the bearish momentum studies, however daily/weekly slow stochastic remain bullish albeit near overbought. Initial res at $1.5657/73. A break above targets test of strong res just above $1.5750. We still note the potential for monthly tech studies to reverse higher, but short-term downside risks remain.
R 4: $1.5845/56 High Feb 8, Measured move target
R 3: $1.5752-89 Hgh Jun 17, 200-wk MA, Wkly Bolli top & 55-mth MA
R 2: $1.5684/90/5700/13 High Jun 6, 100-wk MA, 21-mth MA, Dly Bolli band top
R 1: $1.5657/73 Resistance line from Jul 3 & High Aug 16, High Aug 19
Latest price: $1.5646
S 1: $1.5606/13/16 5-DMA, Low Jun 14
S 2: $1.5537 Pennant top from Jun 17, 5-DMA
S 3: $1.5512/16/21 High Aug 12, Resistance line from Jan 2013, 200-DMA
S 4: $1.5470/77 High Jun 25
USD/JPY attempted to break above the 21-DMA yesterday but ended lower to leave a decent upper shadow despite the bullish dly studies. Initial res at Y98.00/13, above here key res around Y98.34-78, includes dly Kijun and dly Ichimoku cloud base and top. However, failure at res could flip sentiment lower and reverse mthly studies from overbought levels. Initial suppt is at Y97.05/06/23.
R 4: Y99.45/70/94 Res line May 22
R 3: Y98.91/99.04/08/15 100-DMA, Lows Jul 17, 15, Aug 5 high
R 2: Y98.34/57/76/78 Daily Kijun, Daily Ichimoku base, Cloud top
R 1: Y98.00/13 21-DMA, High Aug 19
Latest price: Y97.29
S 1: Y97.05/06/23 Lows Aug 16, 15, Daily Tenkan
S 2: Y96.75/87 Jun 21 low
S 3: Y95.62/77/81/93 High Jun 18, Low Aug 8, Dly Bolli base
S 4: Y94.92/99/95.22 Apr 2 suppt line, May 2010 high & Jun 7 low, Jun 17 high