EURUSD
Yesterday’s recovery from 1.4515 renews upside pressure as the euro has reached a fresh ytd high at 1.4650. Although I am bullish on EUR, I believe that current uptrend is due for correction. However, yesterday’s recovery confirms how strong current uptrend is therefore each minor pullback could be a fresh buying opportunity. Despite all recent rallies into the 1.46 zone, the upper band of the trend channel formed on the daily charts remains intact, providing a selling point for those looking for a reverse around these levels, aiming to the channel’s bottom on a potential decline. A break out above this resistance region will most likely be the ultimate confirmation that we are heading towards 1.5. Current gains in equity markets favor further gains above 1.4600 and a potential correction in equities would be viewed as a dip in the longer term rising trend. Watch for possible reaction on reaching 1053.50 in S&P - the median retracement of the large decline from 14440, same on DJI at 9803. Current quote is 1.4624 @06:00 GMT
Support: 1.4525, 1.4450 and 1.4400
Resistance: 1.4650, 1.4700 and 1.4720/50
GBPUSD
Pound found support on the rising trend line around 1.6515 on yesterday’s pullback and returned into the 1.66 region afterwards, testing offers near the 1.6630 barrier formed by the 50% retracement of the last down leg from 1.6740 to 1.6520. Upside seem favored for now as both short term and intra-day studies are bullish. Daily sentiment will remain positive as long as 1.6400-1.6450 support zone remains intact. The 4-hrs studies are slightly neutral but will turn bullish on breaking above 1.6630, thus opening 1.6700 and 1.6740/50. Current quote is 1.6627 @06:00 GMT
Support: 1.6600, 1.6520, 1.6450 and 1.6400
Resistance: 1.6630/50, 1.6700 and 1.6740/50
USDJPY
Downside pressure remains high as the short-term studies are highly bearish. Current recovery is most likely corrective and former support, now providing resistance at 91.80/00 may provide a stable barrier on extended gains. Intra-day sentiment is positive and will remain this way as long as the dollar holds recent gains above 90.50. Current quote is 91.12 @06:00 GMT
Support: 91.00, 90.50 and 90
Resistance: 91.50, 92.00 and 92.50
