The close above the 21-DMA on Wednesday combined with correcting O/S daily studies has seen a shift in focus. Bulls now favour a retest of the 2014 high while the $1.6856 level supports. The 21 day upper Bollinger band comes in at $1.6962 today and with closes above a rarity, topside moves may initially lack follow through. Bears need to see a close back below the $1.6856 support to ease bullish pressure and target the 55-DMA.
The lack of follow through on dips below the 200-DMA is a concern for bears, especially when combined with relatively O/S daily tech studies. The move lower found support ahead of the 2014 low before bouncing back towards initial resistance. Bulls need a close above initial resistance to confirm an easing of the current bearish pressure. Bears look for a close below the 200-DMA and fresh 2014 lows to reconfirm bearish pressure and target sub Y100 levels
The move lower continued Wednesday with the pair falling just short of the 200-DMA. Bulls need to see a close above Y139.45 to confirm an easing of bearish pressure. Layers of resistance remain Y139.33-141.30 including key moving averages with a close above needed to end bearish hopes and initially target Y142.45 and then 2014 highs. While Y139.45 caps, bears will continue to target the 200-DMA with a close below then targeting 2014 lows.
The move to fresh 2014 lows continued for EUR/GBP on Wednesday with bears now firmly focused on sub Gbp0.8000 levels. The previous 2014 low at Gbp0.8119 now becomes initial resistance with bulls needing a close above to relieve the immediate bearish pressure. Bulls still need to see a close above the Gbp0.8191 level to end bearish hopes and see immediate focus shift higher to the 55 & 100-DMA’s around Gbp0.8252