The bounce from fresh 2014 and 2 year lows and below the Bollinger band base to end last week combined with O/S daily studies looking to correct has provided bulls with a glimmer of hope. The $1.2591-1.2632 resistance region is key this week with bulls needing a close above the 21-DMA to shift focus back to the $1.2900-95 region. Initial support is noted at $1.2452 with bears needing a close below to reconfirm bearish pressure.
RES 4: $1.2632 Hourly resistance Oct 30, 21-DMA
RES 3: $1.2591 Hourly resistance Oct 31
RES 2: $1.2539 Alternating hourly support/resistance
RES 1: $1.2495 Alternating hourly support/resistance
LPRICE: $1.2477
SUP 1: $1.2452 Hourly support Nov 10
SUP 2: $1.2357 2014 Low Nov 7
SUP 3: $1.2241 Low Aug 10 2012
SUP 4: $1.2133 Low Aug 2 2012
Bulls take some comfort in Friday’s bounce from just short of the 2013 low which hints at a bounce back towards the $1.6021-87 region this week. Bulls need to see a close above $1.6087 to confirm breaks of the 21-DMA and falling daily trend line with immediate focus shifting to $1.6182-1.6228 and overall focus to the $1.6525-35 region where the 100-DMA is located. Bears now need a close below $1.5768 to reconfirm bearish pressure.
RES 4: $1.6038 High Oct 30
RES 3: $1.6021 21-DMA
RES 2: $1.6002 High Nov 6
RES 1: $1.5933 Alternating hourly support/resistance
LPRICE: $1.5902
SUP 1: $1.5868 Hourly support Nov 10
SUP 2: $1.5775 Low Sept 13 2013
SUP 3: $1.5717 High Aug 21 2013 now support
SUP 4: $1.5563 Low Sept 6 2013
The sharp correction lower from fresh 2014 and 7 years highs Friday is of some concern for bulls with the break of initial support to start the new week hinting at a deeper pullback targeting the ¥112.48-98 region. The ¥112.48-98 region is seen as key support with bears needing a close below to target the ¥109.67-110.09 region where the 21–DMA is located. Bulls need a close above ¥114.57 to regain control and target the ¥115.59-91 region.
RES 4: ¥117.94 Monthly High Oct 15 2007
RES 3: ¥115.91 Monthly High Nov 1 2007
RES 2: ¥115.59 2014 High Nov 7
RES 1: ¥114.57 Hourly resistance Nov 10
LPRICE: ¥114.09
SUP 1: ¥112.98 Previous hourly resistance now support
SUP 2: ¥112.48 High Oct 31 now support
SUP 3: ¥111.89 Hourly support Oct 31
SUP 4: ¥110.09 High Oct 1 now support
The lack of follow through following Thursday’s move to fresh 7 month highs combined with O/B daily studies and relatively bearish closes remain significant concerns for bulls. In saying that, bears now need a close below ¥142.06 to hint at a deeper move lower that initially targets the ¥140.39 support. Bulls now need a close above ¥143.05 to regain control and reconfirm bullish focus on 2014 highs.
RES 4: ¥145.12 2014 High Jan 2
RES 3: ¥144.22 High Nov 6
RES 2: ¥143.60 Hourly resistance Nov 6
RES 1: ¥143.05 High Nov 7
LPRICE: ¥142.36
SUP 1: ¥142.06 Low Nov 7
SUP 2: ¥141.70 Low Nov 4
SUP 3: ¥141.38 Previous hourly resistance now support
SUP 4: ¥140.39 Low Nov 3
The £0.7864 level confirmed its significance as resistance last week repeatedly capping rallies. Bulls continue to look for a close above £0.7864 to confirm an easing of bearish pressure and above £0.7927 to confirm a break of 21, 55 & 100-DMAs, ending bearish hopes and shifting focus back to the £0.8066-67 region. While £0.7864 caps bears remain firmly focused on the £0.7764-66 region.
RES 4: £0.7927 High Oct 22
RES 3: £0.7895 55-DMA
RES 2: £0.7886 21-DMA
RES 1: £0.7864 Low Oct 30 now resistance
LPRICE: £0.7844
SUP 1: £0.7798 Low Nov 6
SUP 2: £0.7766 2014 Low Sept 30
SUP 3: £0.7764 2012 Low July 23 2012
SUP 4: £0.7695 Monthly Low Oct 20 2008
