EUR/USD Daily Pivots
R3 - 1.1342
R2 - 1.1302
R1 - 1.1238
Pivot - 1.1197
S1 - 1.1134
S2 - 1.1093
S3 - 1.1030
EUR/USD (1.114): EUR/USD: Further downside in store
The daily charts saw a bearish close yesterday coming off the previous day's doji candlestick pattern. The occurrence of this reversal pattern just below the main resistance on the daily chart at 1.1284 indicates a possible shift to the downside. However, support at 1.1119 is likely to see prices being held at this level for a short while ahead of a decline lower. On the H4 time frame, the breakdown of prices from the new rising price channel after prices hit resistance at 1.1254 has signaled a near term weakness in EUR/USD. Support at 1.1135 on the H4 time frame will be key, as a close below this level will see EUR/USD decline to 1.11 support where prices reversed just a few pips above this level on at 23rd September.
USD/JPY Daily Pivots
R3 - 121.103
R2 - 120.726
R1 - 120.304
Pivot - 119.927
S1 - 119.505
S2 - 119.128
S3 - 118.706
USD/JPY (120.1): USD/JPY: Consolidation continues
Prices remain range bound with no clear directional bias being set yet again despite the longer term bias pointing to a continued decline lower. We do expect to see prices attempt another test of resistance near 121.48 region before a decline lower. On the H4 time frame, USD/JPY is showing signs of establishing resistance at 120.275 albeit a minor resistance level. Failure to close above 120.275 will indicate a sideways price action with lower support at 119.52/119.4 holding the declines in the near term. A break below the main support at 119.145 is required for the declines to be validated.
GBP/USD Daily Pivots
R3 - 1.5298
R2 - 1.5256
R1 - 1.5192
Pivot - 1.5150
S1 - 1.5086
S2 - 1.5044
S3 - 1.498
GBP/USD (1.513): GBP/USD: Bullish divergence building up
The Cable attempted to break out from the bullish divergence but prices remain pressured to the downside. There has been strong consolidation between 1.5178 - 1.5136 level of support. On the daily charts, the main support sits at 1.51215 - 1.509 and we expect a test to this support before expecting any correction to the declines. GBP/USD will have to clear the initial short term resistance at 1.5178 which will then see a corrective rally targeting the first support at 1.5255 and eventually to 1.5343.