EURUSD fell below 1.2250
EURUSD declined on Friday and fell below our support-turned-into-resistance line of 1.2250 (R1). During early European hours Monday the pair is headed back up and testing that level as a resistance. The failure to breach it could push the rate even lower, probably towards our next support of 1.2160 (S1), the lows of 3rd of August 2012. Looking at our short-term momentum studies, the RSI found resistance at its 30 line, while the MACD, already below its trigger line, moved further into its negative territory. These momentum signs amplify the case for further declines, but I would be cautious for a small correction before the bears take the reins again. In the bigger picture, the rate is still printing lower lows and lower highs below both the 50- and the 200-day moving averages and this keeps the overall path to the downside.
• Support: 1.2160 (S1), 1.2120 (S2), 1.2050 (S3)
• Resistance: 1.2250 (R1), 1.2345 (R2), 1.2410 (R3)
USDJPY still in a consolidating mode
USDJPY consolidated on Friday, staying below the psychological level of 120.00 (R1). I would wait for a break above that level to see further advances perhaps towards our next resistance of 121.85 (R2). Looking at our short-term momentum signals, the RSI remained elevated just above the 50 line, while the MACD, already above its trigger line, moved into its positive territory. The momentum signs support the notion for another leg up, at least temporarily, and I would wait for a break above the key 120.00 (R1) level to get confident for further advances. As for the broader trend, the price structure is still higher highs and higher lows above both the 50- and the 200-day moving averages and this keeps the overall path of the pair to the upside.
• Support: 117.35 (S1), 115.45 (S2), 114.700 (S3)
• Resistance: 120.00 (R1), 121.85 (R2), 122.44 (R3)
GBPUSD is moving sideways
GBPUSD moved sideways on Friday gyrating around the 1.5655 level a few pips below the 50-period moving average. With no clear trending direction on the 4-hour chart, I would maintain a neutral stance as far as the short-term picture is concerned. This is supported by our short-term momentum signals. The RSI found resistance near its 50 line, while the MACD is a touch below its trigger line, moving further into its negative territory. As for the broader trend, I still believe that as long as Cable is trading below the 80-day exponential moving average, the overall path remains negative. Our daily momentums however are on a rising mode suggesting that the decline has lost some of its momentum and that we could see an upward correction before the sellers prevail again.
• Support: 1.5550 (S1), 1.5500 (S2), 1.5420 (S3)
• Resistance: 1.5740 (R1), 1.5790 (R2), 1.5830 (R3)