EUR/USD remains heavy following closes below previous key support levels at $1.3333 and $1.3294. Layers of resistance have developed on the hourlies with bulls needing a close above $1.3341 to confirm an easing of bearish pressure and a close above the 21-DMA ($1.3379) to provide some breathing room. Despite O/S studies and the proximity of the Bollinger band base, bears remain focused on the $1.3093-1.3101 region
RES 4: $1.3341 Hourly support Aug 19 now resistance
RES 3: $1.3328 Hourly resistance Aug 19
RES 2: $1.3298 Hourly resistance Aug 20
RES 1: $1.3269 Hourly resistance Aug 21
LPRICE: $1.3243
SUP 1: $1.3223 High Sept 5 2013 now support
SUP 2: $1.3101 Monthly Low Sept 7 2013
SUP 3: $1.3093 Falling daily channel base
SUP 4: $1.2993 Low July 15 2013
The failed recovery that stalled ahead of $1.6757 resulted in a sharp fall and losses below the 200-DMA. Fresh 4 month lows see bears firmly focused on the $1.6466-1.6551 region where Mar and Apr monthly lows are located. The key concerns for bears are O/S daily studies and the proximity of the Bollinger band base but in saying that, bulls continue to look for a close above the 200-DMA to ease bearish pressure and above $1.6894 to shift focus higher
RES 4: $1.6757 Low Aug 12 now resistance
RES 3: $1.6712 Breakdown level Aug 19
RES 2: $1.6680 200-DMA
RES 1: $1.6600 Hourly resistance Aug 21
LPRICE: $1.6565
SUP 1: $1.6562 Bollinger band base
SUP 2: $1.6551 Monthly Low Apr 4
SUP 3: $1.6466 Monthly Low Mar 24, 55-WMA
SUP 4: $1.6384 Low Feb 10
Gains accelerated Wednesday with the USD/JPY rallying towards Apr highs and remaining bid following a bullish close. Layers of support have developed with bears needing a close below Y102.90 to confirm an easing of bullish pressure. Overall bears look for a close below the 21-DMA to hint at lower levels and below the 55-DMA to confirm.
RES 4: Y107.01 Weekly High Sept 2008
RES 3: Y105.44 2014 High Jan 2
RES 2: Y104.92 High Jan 16
RES 1: Y104.13 Monthly High Apr 4
LPRICE: Y103.87
SUP 1: Y103.65 Hourly support Aug 21
SUP 2: Y103.40 Previous hourly resistance now support
SUP 3: Y103.11 Hourly support Aug 20
SUP 4: Y102.90 Low Aug 20
Wednesday’s rally confirmed a break of the long term falling daily channel top with the rally so far remaining capped at the 55-DMA, 55-WMA and Bollinger band top. Bulls continue to look for a close above 138.07 to shift overall focus to Y138.77-139.89 where 100 & 200-DMAs are located. Initial support is now noted Y137.01-11 with bears needing a close below to signal a false break and below Y136.77 to shift focus back to 2014 lows.
RES 4: Y138.48 High July 14
RES 3: Y138.07 High Aug 1
RES 2: Y137.89 Bollinger band top
RES 1: Y137.84 55-DMA & 55-WMA
LPRICE: Y137.58
SUP 1: Y137.46 Hourly support Aug 21
SUP 2: Y137.11 21-DMA
SUP 3: Y137.01 Hourly support Aug 20
SUP 4: Y136.77 Low Aug 15
Yet another topside attempt has resulted in a sharp correction lower with Wednesday’s selloff marginally dipping below the 55-DMA. Bears continue to look for a close below the 55-DMA to confirm an easing of bullish pressure and below Gbp0.7915 to end bullish hopes and target 2012 lows. Bulls now need a close back above Gbp0.8008 to provide some breathing room and shift focus back to the Gbp0.8033-72 region.
RES 4: Gbp0.8051 Low June 11 now resistance
RES 3: Gbp0.8036 High Aug 14
RES 2: Gbp0.8033 Bollinger band top
RES 1: Gbp0.8008 Previous hourly support now resistance
LPRICE: Gbp0.7993
SUP 1: Gbp0.7969 55-DMA
SUP 2: Gbp0.7955 Breakout level Aug 13
SUP 3: Gbp0.7915 Low Aug 6
SUP 4: Gbp0.7888 Bollinger band base
