EURUSD:
More bullish for the pair in the short term. The longer term still more bearish.
EURUSD is more bullish on the hourly chart with the 100 and 200 hour MA below as a tipping point to a more downside bias. Look for sellers against the 1.2612-19 if the momentum higher continues.
Looking at the hourly chart, the pair is above the 100 and 200 hour MAs (blue and green lines) at 1.2497 and 1.2472 level respectively. A move below these levels will turn the technical bias more to the downside. On the topside, the highs from November 4 and Monday’s high both at 1.2576 area will be a level that if broken and stayed above, should give the pair another push higher.
Looking at the daily chart the 1.2587 is the down sloping trend line (see chart below). A move above this level will open up the upside for 1.2619. This is the midpoint of the move down from the October high.
Typically, with the trend move down from the May high to the lows seen here in November. a corrective rally might target higher levels (say the 100 day MA). However, given the fundamental backdrop for the EUR and Dollar being at odds, I would expect that traders will be looking to be more aggressive on selling rallies Putting it another way, the idea of a EURUSD heading up to high for October at 1.28818 just does not seem likely.
If the price is able to correct to the midpoint of the move down from October, at the 1.26195 (this is also the 61.8% of the move down from the October 29th high – see hourly chart), this area should find sellers. This area is also near lows from October (see blue circled numbers in the chart below)
EURUSD should be capped. 1.2587 and 1.2619 are levels to eye on a rally.
USDJPY
The USDJPY on the topside will look for a break above the 117.93. This is the high from from October 2007. If it breaks, that level will then become support and the trend can continue for the pair.
Looking at the hourly chart, the price is above trend lines which is bullish. If the price is to go down, it must move below trend lines and retracements of the move up this week at 116.88, 116.607. The 100 hour MA at the 116.54 will be hard to get below without a major fight by dip buyers.
USDJPY hourly chart is bullish. Where are the support levels.
