The pair comes under increased pressure after yesterday’s failure to clear initial resistance at 1.3280, resulted in fresh weakness. Loss of day low at 1.5757 filled the gap, extending losses through last Friday’s low at 1.3153, also main bull trendline off 1.2622, 13 Jan low, after downgrade of a number of European countries was announced. Break below daily 20 day SMA, currently at 1.3117 to open way towards next targets at 1.3100/1.3090 zone, with key near-term support at 1.3025, to come in focus. Corrective action on oversold hourly conditions, faces strong resistance at 1.3200/30 zone that is expected to limit the upside for now.

Res: 1.3163, 1.3200, 1.3220, 1.3230
Sup: 1.3126, 1.3100, 1.3090, 1.3025

Yesterday’s failure to clear 1.5800 congestion, also bear trendline off 1.5926 high, triggered fresh weakness through higher platform and H&S neckline at 1.5730 and 1.5700, daily 20 / 90 day SMA’s, to signal further weakness ahead. Immediate targets lie at 1.5650/40 zone, as near-term studies remain negative. Oversold conditions on hourly chart, however, suggest corrective rally before near-term bears resume, with 1.5790 zone, 20 day SMA / trendline resistance, expected to cap.

Res: 1.5727, 1.5757, 1.5777, 1.5790
Sup: 1.5683, 1.5650, 1.5640, 1.5600

The near-term positive sentiment was boosted by BoJ decision to further loosen monetary policy, as the pair emerged from two-day consolidation, rallying through long-term bear-trendline, drawn off 2007 high and attempting through next strong barrier at 78.05, 200 day SMA . Break here to expose another significant resistance at 78.27, Nov/Dec 2011 range ceiling / 25 Jan peak, to possibly re-focus post-intervention highs at 79.00/50, on a break. Near-term studies are positive, yet no signals of reversal, despite overbought hourly conditions. Initial support lies at 77.80, previous range ceiling, with 20 day SMA at 77.65, expected to contain. Only break below yesterday’s lows at 77.35, would delay immediate bulls.

Res: 78.05, 78.27, 78.40, 79.00
Sup: 77.80, 77.50, 77.35, 77.20

Returns to the near-term range, after finding good support at 0.9100, with sharp recovery after false break lower, regaining last Friday’s high at 0.9200 zone. Studies on 4H chart turned positive and see potential for further extension higher and test of key upside levels at 0.9250/60, near-term range ceiling, break of which to open way for stronger recovery of broader downtrend from 0.9600 high. Clear break above 0.9200 barrier is required, however, pullback overbought hourly conditions, may delay rally. Immediate support lies at 0.9170, ahead of strong one at 0.9150 zone.

Res: 0.9195, 0.9225, 0.9250, 0.9260
Sup: 0.9170, 0.9158, 0.9150, 0.9100