EUR/USD is leaving higher highs and lows after bouncing from support just above the $1.3500 level – bears aim to retest this key level however bulls eye former July support line at $1.3632. Daily studies are near oversold and could turn higher, however weekly studies are bearish and monthly studies are near overbought. Initial resistance is at $1.3582/83 – the Jan 15/16 lows, a break above targets $1.3632 but medium-term outlook points lower.
R 4: $1.3699/3707/11 High Jan 14, Low Dec 13, Reversal high Jan 2013
R 3: $1.3647/56 21-DMA, High Jan 7
R 2: $1.3613/15 High Nov 27, 55-DMA
R 1: $1.3582/83 Lows Jan 15, 16
Latest price: $1.3553
S 1: $1.3524 61.8% of $1.3296-1.3893
S 2: $1.3501/08 Daily Bollinger band base, Low Jan 20
S 3: $1.3458 38.2% of $1.2755-1.3893
S 4: $1.3437 76.4% of $1.3296-1.3893
GBP/USD moves back above July support line after bouncing from daily Bolli base and 38.2% of $1.5855-1.6603 which turned daily studies more positive. However, weekly studies remain overbought and failure to retest the $1.6603 Jan 2 reversal high would target support. Initial support is at $1.6444/45, the 21-DMA and July support line, break below then finds support around $1.6400 and further key support is around $1.6317/23 – the 38.2% and 55-DMA
R 4: $1.6603 Reversal high Jan 2
R 3: $1.6558 Daily Bollinger band top
R 2: $1.6517 High Jan 10
R 1: $1.6497 High Jan 9
Latest price: $1.6467
S 1: $1.6444/45 21-DMA, Former Jul 9 support line
S 2: $1.6400 Low Jan 21
S 3: $1.6347 Low Jan 13
S 4: $1.6317/23 38.2% of $1.5855-1.6603, 55-DMA
USD/JPY remains ranging between 21-DMA as initial resistance at Y104.56 and above daily Kijun line as initial support at Y104.01. Bulls tested above the 21-DMA yesterday to a high at Y104.75 – further resistance, but we note daily studies are less bullish and failure to close above the 21-DMA adds downside pressure. Also, weekly/monthly studies are overbought adding further risk lower – a break below Y104.00 level targets the Jan 13 low at Y102.86.
R 4: Y105.44/50 High Jan 2, 61.8% of Y124.14-Y75.35
R 3: Y104.99/105.06/12 Low Dec 30, Highs Jan 9, 8
R 2: Y104.75 High Jan 21
R 1: Y104.56/55/59 21-DMA, Lows Jan 2, Jan 8
Latest price: Y104.42
S 1: Y103.83/104.01 Low Jan 10, Daily Kijun line
S 2: Y103.55/59 Daily Bolli base, 23.6% of Y97.62-105.44
S 3: Y102.86/87 Low Jan 13, 55-DMA
S 4: Y102.37/45 Daily Ichimoku cloud base, 38.2% of Y97.62-105.43
