Daily Market Technicals

The move higher continued for the euro on Tuesday with it making fresh 2 month highs by 3 pips. Immediate bullish focus remains on retests of the 2014 high with a break above then seeing focus shift sharply higher to the $1.4247 monthly high from Oct 2011. Bears now need a close below the $1.3905 previous resistance to ease the bullish pressure and a close below the 21-DMA to shift focus back to retests of last week’s $1.3771 low

RES 4: $1.4247 Monthly high Oct 27 2011

RES 3: $1.3977 21 week upper Bollinger band

RES 2: $1.3967 2014 high Mar 13

RES 1: $1.3951 High May 6

LPRICE: $1.3925

SUP 1: $1.3905 Monthly high Apr 11 now support

SUP 2: $1.3889 High May 1 now support

SUP 3: $1.3869 Hourly support May 5 & 6

SUP 4: $1.3845 21-DMA

The move to fresh 2014 and 5 year highs overnight reconfirmed bullish focus and sees bulls now initially targeting the $1.7042 Aug 5 2009 high. Initial support is now noted at the previous $1.6919 2014 high set last week with bears needing a close below this level to ease the bullish pressure. Overall, bears look for a close below the 21-DMA to end bullish hopes and shift focus back to retests of the longer term rising daily channel base ($1.6672).

The Y101.86 support level finally gave way overnight. Bearish pressure is dominating and focus has shifted to the Y100.75-101.32 region with the key 200-DMA noted at Y101.06. Bulls now need a close back above the previous Y101.86 support which is now seen as initial resistance to ease the current bearish pressure.  Overall a close above Y102.36 remains needed to end bearish hopes and shift focus back to the Y102.87-103.10 region.

EUR/JPY continues to oscillate around the triangle base (Y141.53) with the 100-DMA just below at Y141.31. Bearish pressure is currently dominating with a break lower favoured until a close above Y142.08 is seen. Bears look for a close below Y140.99 to confirm a break to the downside with immediate focus then shifting to the Y139.96-140.02 region. Bulls need a close above Y142.08 to ease the current bearish pressure and hint at a topside break

After having failed at the 21-DMA on Monday the correction lower marginally traded at fresh 3 month lows before pausing just short of the Gbp0.8191 Feb 28 low. Bulls continue to look for a close above the 21-DMA to confirm an easing of bearish pressure, whereas a close above Gbp0.8257 is needed to hint at further topside and shift immediate focus to the 55 & 100-DMA’s. While Gbp0.8231-57 caps, bears now target retests of the 2014 low.