EUR/USD squeezes higher but remains below the resistance line from Oct 3 – initial resistance at $1.3574 – while the downside finds support from the 5-DMA at $1.3545 with the 23.6% and 21-DMA just below at $1.3518. Daily studies begin to show signs of strengthening; 10-day momentum failed to cross into negative territory which is a bullish signal, a break above the Oct 3 res line would target a move to test the Oct 3 reversal high at $1.3646.
R 4: $1.3681 Reversal high Apr 2007
R 3: $1.3646/48 High Oct 3, Daily Bollinger band top
R 2: $1.3607 High Oct 8
R 1: $1.3574 Resistance line from Oct 3
Latest price: $1.3563
S 1: $1.3545 5-day moving average
S 2: $1.3518 23.6% of $1.3105-1.3646 & 21-DMA
S 3: $1.3486 Low Oct 9
S 4: $1.3462 Low Sept 25
GBP/USD sill holds above the 38.2% of $1.5429-1.6260 – initial support at $1.5943, but daily studies have pointed lower for a while. A break below this level then tests the channel base at $1.5918, just below the 23.6% of $1.4814-1.6260 which is key support at $1.5919. Bears eye below here as weekly studies also point lower, a downside break of the channel targets a measured move to around $1.5670, but further failure at channel base encourages bulls.
R 4: $1.6166 Channel top from Jul 3
R 3: $1.6100 High Oct 7
R 2: $1.6053 21-day moving average
R 1: $1.5989 5-day moving average
Latest price: $1.5984
S 1: $1.5943 38.2% of $1.5429-1.6260
S 2: $1.5918/19 Channel base from Jul 3, 23.6% of $1.4814-1.6260
S 3: $1.5866 Daily Bollinger band base
S 4: $1.5845 50.0% of $1.5429-1.6260
USD/JPY gapped lower to open below the daily Ichimoku cloud – now struggling to reclaim its lost gains and break back into the cloud – the base is at Y98.27 also the current price. Daily studies are mixed as 10-day momentum slipped a little but slow stochastic rises sharply – bulls look to close back in cloud and test the 100-DMA at Y98.53 but failure to do so could send studies lower and encourage bears while monthly studies slide.
R 4: Y99.27 Former Aug support line
R 3: Y99.07 61.8% of Y100.61-96.57
R 2: Y98.67 Daily Ichimoku cloud top
R 1: Y98.53/59 100-DMA, 50.0% of Y100.61-96.57
Latest price: Y98.25
S 1: Y97.92 Low Oct 11
S 2: Y97.58/60 Daily Tenkan, Falling channel top
S 3: Y97.49 Oct 4 high
S 4: Y96.94 200-day moving average
EUR/JPY gapped lower but remains above the daily Kijun line at Y132.97 despite bears already testing below. Initial support now seen as the 21-DMA at Y132.76 and below here is dly Tenkan at Y132.38. However, bulls already looking to test key res around Y133.50/60 – the 61.8% of Y134.95-131.15 and Oct 11 high. A break above here likely targets the Sept 19 high at Y134.95 but ahead of here is the May 22 high at Y133.80 and 76.4% at Y134.05.
R 4: Y134.38/41 Jan 2010 reversal high, Daily Bollinger band top
R 3: Y134.05 76.4% of Y134.95-131.15
R 2: Y133.80 May 22 reversal high
R 1: Y133.50 61.8% of Y134.95-131.15
Latest price: Y133.25
S 1: Y132.76 21-DMA
S 2: Y132.38 Daily Tenkan line
S 3: Y132.12 Weekly Tenkan line
S 4: Y131.99 Resistance line from Sept 19
