EUR/JPY: After a retrace back from 130.0 area the chart is in 5-day consolidation with remaining downside risks despite the two recent Doji sessions.
A stronger selling power could lead the price towards the near 1st support level at 128.50, which could be followed by the 2nd and the 3rd supports close to each other at 128.00 and 127.83 respectively. Stronger buying power on the other hand could result in a price touching the 1st resistance level at 129.89 and in case of a breach the 130 level could be approached again with the 2nd resistance residing at 130.71-77 and the 3rd one at 130.91.
USD/JPY: The bears have taken the lead over the past week and dollar is now trading at 112.60 against the yen.
A continuing downslide would result in a breach at the 112.27 – the 1st support level hitting the 2nd one at 111.96-80 or the 3rd one slightly lower at 111.46. Alternatively, a reversal could lead into a 1st resistance breakthrough at 112.86-90. If so, the 2nd resistance awaits at 113.32 followed by the 3rd one a little higher at 113.58.
The GBP/USD secured above 1.30 resistance, market is likely to ‘buy the dip’.
The GBP/USD is trading at 1.30705, a secure above the 1.30 crucial resistance signifies a strong bull trend. The first resistance is on 1.3117, the Asia high and the September 22 high as well. The second resistance is on 1.3139, the September 14 low and the last resistance is on 1.3161, the pivot r1 and the September 15 low. However, if the price ebbs, we expect the first support to be at 1.049, the daily pivot. If the pressure persists, a further dip to the second support at 1.3030, the June 30 high and the July 14 mid-price is expected. The last line of defence is on 1.2984, the July 6 high.
Bullish trend persists in the EUR/USD despite temporary pullbacks.
The EUR/USD is consistently trading above two moving averages (Green= the 100 day moving average, Yellow= the 50 day moving day average), hence we expect the price to continue to march upwards. The first resistance is on 1.1489, the July 12 high, followed closely by another resistance which is at 1.1497, the pivot r1. The last resistance is on 1.1529, the May 4 2016 high. The pair is currently trading at 1.14567, testing its first support level at 1.1434, the July 14 mid-price. The second and third support are at 1.1392, the July 14 low and 1.1371, the July 13 low. Those are very strong supports as they are at the confluence of the 50 day moving average and also the 100 day moving average respectively.
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