EUR/USD recouped some of the losses from the bearish engulfing candle which still awaits confirmation despite the bearish daily studies. Weekly studies also look overbought and initial support remains at $1.3539 – the Oct 4 low. A break below here then targets the 23.6% at $1.3518 and the 21-DMA at $1.3471. However, eur/dol left a higher high and remains bullish while above the 200-week MA at $1.3336 and a support line from Jul 10 at $1.3283
R 4: $1.3711 High Jan 2013
R 3: $1.3681/86 Reversal high Apr 2007, Daily Bollinger band top
R 2: $1.3646 High Oct 3
R 1: $1.3591 High Oct 7
Latest price: $1.3562
S 1: $1.3539 Low Oct 4
S 2: $1.3518 23.6% of $1.3105-1.3646
S 3: $1.3501 Low Sept 19
S 4: $1.3471 21-day moving average
GBP/USD tested the channel top yesterday to leave a high at $1.6100, now initial resistance, after bouncing from the 21-DMA now at $1.6022. However, daily studies look bearish and weekly studies appear overbought, bulls look for another topside breakout of the channel top which is further res at $1.6119 but bears will be aiming to follow studies lower to the channel base. We remind of the double-bottom on the monthly chart which targets a measured move to $1.6690.
R 4: $1.6207 Weekly Bollinger band top
R 3: $1.6163 High Sept 18
R 2: $1.6119 Channel top from Jul 3
R 1: $1.6000 High Oct 7
Latest price: $1.6067
S 1: $1.6064 23.6% of $1.5429-1.6260
S 2: $1.6022 21-day moving average
S 3: $1.5956 Low Sept 25
S 4: $1.5943 38.2% of $1.5429-1.6260
USD/JPY continues to slide and now challenges the 200-DMA as support – now at Y96.74 but bears already tested below here to the daily Bolli base at Y96.60. Studies remain in sell-mode and a break below the 200-DMA could see a correction to the Aug 8 low at Y95.81, just above an Apr 2 support line at Y95.74. Upside pressure comes from overbought daily studies but further downside pressure seen from the 21-DMA bearishly crossing below the 100-DMA.
R 4: Y98.37 55-day moving average
R 3: Y98.11/12 Daily Ichimoku Cloud base, Falling channel top
R 2: Y97.85 Daily Tenkan
R 1: Y97.49 Oct 4 high
Latest price: Y97.11
S 1: Y96.57/60 Hourly low, Daily Bollinger band base
S 2: Y96.40 Support line from Sept 6 low
S 3: Y95.93 Falling channel base from Sept 11 high
S 4: Y95.81 Low Aug 8
EUR/JPY bounces from the daily Bollinger band base, now at Y131.21, which the pair has already tested below but bulls are pushing higher today to test resistance around Y131.77, the Oct 4 low. Bulls look to hold back above the former May 22 trendline while bears aim to break below the Bolli band to test the support line from Jun 13 seen at Y130.92. A failed retest of this level flips sentiment higher but break below targets Aug 12 low at Y127.98
R 4: Y132.75 21-DMA
R 3: Y132.54 Daily Tenkan line
R 2: Y132.43 Daily Kijun line
R 1: Y132.04 50.0% of Y169.96-Y94.12
Latest price: Y131.67
S 1: Y131.15/21 Hourly low, Daily Bollinger band base
S 2: Y130.92 Support line from Jun 13
S 3: Y130.60/64 100-DMA, 61.8% of Y127.98-134.95
S 4: Y130.54 Daily Ichimoku cloud top