EURGBP TECHS: Trend Needle Still Points North
- RES 4: 0.9066/9266 High Sep 28 / High Sep 26 and key resistance
- RES 3: 0.8980 High Sep 29
- RES 2: 0.8867 High Oct 12
- RES 1: 0.8829 High Nov 09
- PRICE: 0.8776 @ 15:47 GMT Nov 11
- SUP 1: 0.8686 50-day EMA
- SUP 2: 0.8560/59 Low Oct 31 / 76.4% of Aug 2 - Sep 26 rally
- SUP 3: 0.8522 Low Aug 30
- SUP 4: 0.8471 Low Aug 28
The short-term outlook in EURGBP remains bullish despite Thursday’s pullback. The cross has this week breached resistance at 0.8781, the Oct 21 high. The break strengthens the bullish theme and opens 0.8867 next, the Oct 12 high. Note that moving average studies are in a bull mode position. For bears, a stronger reversal lower and a move through the Oct 31 low of 0.8560 is required to resume recent bearish activity.
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USDJPY TECHS: Clears The Bull Trigger
- RES 4: 148.42 1.382 proj of the May 24 - Jul 14 - Aug 2 price swing
- RES 3: 147.66 High Aug 1998 and a key resistance
- RES 2: 147.25 3.00 proj of the Aug 2 - 8 - 11 price swing
- RES 1: 146.97 High Oct 12
- PRICE: 146.76 @ 19:41 BST Oct 12
- SUP 1: 145.17/144.06 / Low Oct 10 / 20-day EMA
- SUP 2: 143.53 Low Oct 5
- SUP 3: 141.27 50-day EMA
- SUP 4: 140.36 Low Sep 22, and key support
USDJPY maintains a bullish tone and the pair has traded higher today. This has resulted in a break of resistance at 145.90, the Sep 22 high. The breach confirms a resumption of the primary uptrend and marks an extension of the broader bullish price sequence of higher highs and higher lows. Attention turns to 147.25 next, a Fibonacci projection. On the downside, firm trend support lies at 144.06, the 20-day EMA.
AUSSIE 3-YEAR TECHS: (Z2) Bearish Tone
- RES 3: 97.975 - High Mar 16
- RES 2: 97.530 - High Mar 31
- RES 1: 96.920/97.295 - High Oct 4 and the bull trigger / High Aug 3
- PRICE: 96.465 @ 19:35 BST Oct 12
- SUP 1: 96.070 - Low Sep 27 and near-term bear trigger
- SUP 2: 95.960 - Low Jun 17
- SUP 3: 95.504 - 1.0% 10-dma envelope
Aussie 3yr futures continue to trade closer to its recent lows, following the reversal from 96.920, the Oct 4 high. A continuation lower would expose the key support at 96.070, the Sep 27 low. Clearance of this level and 95.960, the Jun 17 low, would confirm a resumption of the broader downtrend. For bulls, key short-term resistance has been defined at 96.920. A breach of this level would instead signal scope for a stronger correction.
EURGBP TECHS: Attention Is On The 50-Day EMA
- RES 4: 0.9292 High Sep 11 2020
- RES 3: 0.9066/9266 High Sep 28 / High Sep 26 and key resistance
- RES 2: 0.8980 High Sep 29
- RES 1: 0.8867 High Oct 12
- PRICE: 0.8739 @ 19:34 BST Oct 12
- SUP 1: 0.8676/49 50-day EMA / Low Oct 4 and a key support zone
- SUP 2: 0.8626 Low Sep 1
- SUP 3: 0.8559 76.4% retracement of the Aug 2 - Sep 26 rally
- SUP 4: 0.8522 Low Aug 30
EURGBP faced stiff resistance Wednesday and reversed Tuesday’s gains. The cross remains above the 50-day EMA - the average intersects at 0.8676 and is a key support. This level, together with 0.8649, the Oct 4 low, defines an important short-term support zone where a break is required to reinstate recent bearish price action. On the upside, resistance is at 0.8867, the Oct 12 high. A break would resume the recent recovery.
