Layers of resistance are now noted on the hourlies in the $1.3638-1.3700 region with bulls needing to see a close above $1.3700 to confirm a break of the 55 & 200-DMA’s. This then sees immediate focus shift to the 100-DMA and overall focus to the $1.3775 level. Bears currently retain the upper hand with a close below $1.3564 needed to confirm the current focus on retests of the June monthly low.
RES 4: $1.3700 High July 1
RES 3: $1.3682 High July 2
RES 2: $1.3669 Hourly resistance July 2
RES 1: $1.3638 Low July 2 now resistance
LPRICE: $1.3608
SUP 1: $1.3595 Low July 3
SUP 2: $1.3576 Low June 26
SUP 3: $1.3564 Low June 20
SUP 4: $1.3503 Monthly Low June 5
The dip below $1.7140 was quickly reversed in aggressive fashion, indicating that bullish pressure continues to dominate with focus remaining on the rising daily channel top. Bears look for a close below $1.7140 to confirm an easing of bullish pressure whereas a close below $1.7063 is needed to hint at a deeper correction. Daily studies remain O/B but current strength can’t be ignored while cable remains above the $1.7063-97 region.
RES 4: $1.7516 High Oct 20 2008
RES 3: $1.7306 Rising daily channel top
RES 2: $1.7198 High Oct 21 2008
RES 1: $1.7167 2014 High July 2
LPRICE: $1.7167
SUP 1: $1.7140 Alternating hourly support/resistance
SUP 2: $1.7097 Low July 1
SUP 3: $1.7063 Previous 2014 high now support
SUP 4: $1.7007 Low June 27
Following on from Wednesday’s close above the 200-DMA USD/JPY sliced through key DMA’s closing above the falling daily trend line off Apr & June monthly highs. Immediate focus shifts to the Y102.35 June 18 high with bulls looking for a close above to end bearish hopes, shifting immediate focus to Y102.79-103.02 and overall focus to 104.13. A close below Y101.95 is needed to shift focus back to the Y101.23-41 region and then Y100.77-82 below.
RES 4: Y103.02 Monthly High May 2
RES 3: Y102.79 Monthly High June 4
RES 2: Y102.56 Bollinger band top
RES 1: Y102.35 High June 18
LPRICE: Y102.02
SUP 1: Y101.95 21-DMA
SUP 2: Y101.73 Hourly support July 3
SUP 3: Y101.41 Low July 2
SUP 4: Y101.23 Monthly Low June 30
Failure to carry on with the break above the 200-DMA provides bears with a little hope in that they now need to see a close back below Y139.86 to negate the spike higher and return focus to the Y137.72-91 region. Bulls need to see a close above the Y139.31 June 10 high to confirm a break higher, although layers of resistance Y139.65-140.37 need to be accounted for before the Y140.99 level is retested.
RES 4: Y139.65 55-DMA
RES 3: Y139.53 38.2% Fibonacci 142.47-137.70
RES 2: Y139.31 High June 10
RES 1: Y139.12 Hourly resistance July 4
LPRICE: Y139.88
SUP 1: Y139.86 Low July 3
SUP 2: Y138.54 Low July 2
SUP 3: Y137.91 Low June 26
SUP 4: Y137.72 Low June 16
Fresh 2014 and two year lows ensure bears are firmly focused on a retest of the 2012 low. The move lower O/N paused ahead of the Gbp0.7923 Sept 27 2012 low with initial resistance now noted at the Gbp0.7951 July 2 low. Bears need a close above Gbp0.7951 to ease bearish pressure a little and a close above the 21-DMA to shift immediate focus to the key Gbp0.8033 resistance level, with a close above confirming an end to bearish hopes
RES 4: Gbp0.8005 21-DMA
RES 3: Gbp0.7998 Low July 1 now resistance
RES 2: Gbp0.7980 Hourly resistance July 2
RES 1: Gbp0.7951 Low July 2 now resistance
LPRICE: Gbp0.7925
SUP 1: Gbp0.7923 Low Sept 27 2012
SUP 2: Gbp0.7911 Bollinger band base
SUP 3: Gbp0.7887 Low Sept 5 2012
SUP 4: Gbp0.7764 2012 Low July 2012
