EUR/USD breaks below the lows of Sept 19 and 20, drawing daily studies further south – 10-day momentum still shows negative divergence while slow stochastic looks to form a sell-signal. Initial support now at $1.3480/83, yesterday’s low and the former 76.4%, below here is the 23.6% of $1.3105-1.3542 at $1.3459. Bears look to test this level while bulls aim to retest the Sept 19 high at $1.3569, however, weekly studies look a little overbought.
R 4: $1.3693 Monthly Bollinger band top
R 3: $1.3681 Reversal high Feb 2007
R 2: $1.3569/72 High Sept 19, Daily Bollinger band top
R 1: $1.5312 5-day moving average
Latest price: $1.3493
S 1: $1.3480/83 Low Sept 23, 76.4% of $1.3711 to $1.2746
S 2: $1.3459 23.6% of $1.3105-1.3542
S 3: $1.3400 High Aug 8
S 4: $1.3392 38.2% of $1.3105-1.3542
GBP/USD still manages to hold above channel top and also 23.6% of $1.5429-1.6163 – initial and further suppt at $1.6001 and $1.5990, respectively. A break below these levels could spark a reversal in sentiment, especially while dly studies slide from overbought territory. Wkly studies also overbought but yet to reverse, next suppt at $1.5915 – monthly triangle top. We remind mthly chart shows upside reversal while we await confirmation of a double-bottom.
R 4: $1.6163/72 High Sept 18, Daily Bollinger band top
R 3: $1.6107 High Oct 2010
R 2: $1.6073 High Sept 23
R 1: $1.6051 5-day moving average
Latest price: $1.6026
S 1: $1.6001 Channel top from Jul 3
S 2: $1.5990 23.6% of $1.5429-1.6163
S 3: $1.5915 Monthly triangle base
S 4: $1.5879/83 Reversal high Feb 1, 38.2% of $1.5429-1.616
USD/JPY shows a little more bearishness as daily studies failed to turn higher, bears are already attempting to slip below the daily Kijun line at Y98.71 but halted at yesterday’s low around Y98.65. Below here, next support is the Sept 16 low at Y98.46, then the Aug 12 support line at Y98.23 followed by daily cloud top at Y97.78. A break below would accelerate losses while monthly studies look so overbought, but bulls continue to eye key Y100.00 level.
R 4: Y99.67 High Sept 20
R 3: Y99.36 High Sept 23
R 2: Y99.07/08 21, 100-day moving averages
R 1: Y98.88 Daily Tenkan & Hourly high
Latest price: Y98.77
S 1: Y98.65 Low Sept 23
S 2: Y98.46 Low Sept 16
S 3: Y98.23 Support line from Aug 12
S 4: Y97.78 Daily Ichimoku cloud top
EUR/JPY descends to test below the daily Tenkan line, now at Y132.40 but bears have already slipped below. Initial support seen as yesterday’s low at Y133.09 and below here is the Jul 24 high at Y132.74, followed by the key daily Kijun line at Y130.12. Daily studies appear to be reversing lower from near overbought – bears may be looking to retest the May trendline at Y131.70, but support ahead of is key – the 21-DMA is at Y131.97.
R 4: Y134.95 High Sept 19
R 3: Y134.67 Daily Bollinger band top
R 2: Y134.38 Jan 2010 reversal high
R 1: Y133.80 May 22 reversal high
Latest price: Y133.43
S 1: Y133.09 Low Sept 23
S 2: Y132.74 High Jul 24
S 3: Y132.12 Daily Kijun line
S 4: Y131.97 21-day moving average