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EUR/USD Technical View

Euro has basically traded around the 1.3460 level all week and although it has given us some bearish signs a breakout of this range could happen either way. At this time traders are more than likely waiting for a good reason to buy or sell with bulls and bears being in a balance, the move will probably be triggered by a news announcement or an event in the following days. Closest support once the pair gets in last weeks range is the low of that range at 1.3365, if this level fails and the pair breaks bellow with we have June 13^th low at 1.3260 as the next clear cut support level followed lower by the 1.3160 .50 Fib of the February-March range. Conversely if EurUsd doesn’t break bellow 1.3365, last week’s range between 1.3365 and 1.3410 might become a base for another push north, if that happens the first bull target will be yesterday’s high at 1.3477 before possibly getting above 1.3500 and towards June 5^th high of 1.3550.

Resistance Levels

• 1.3680 – April 27th High
• 1.3630 – May 7th High
• 1.3550 – June 5th High
• 1.3459 – May 10th/11th Low

Support Levels

• 1.3365 – December 3rd High
• 1.3300 – January 7th High
• 1.3260 – February 27th High
• 1.3160 - .50 Fib of Feb-March range

GbpUsd Technical View

Cable is trading above the 2.0000 level but it doesn’t seem to have much momentum, the same as in the Euro we can see on the daily charts the pair is somewhat overbought looking at the oscillators and that is just another reason for bears to hold on to their position and why not perhaps add something. If the pair holds on to its current levels the bullish trend remains valid and with that in mind one can look for resistance levels, just above today’s high is the 2.0060 level established on April 25^th high, which is the only intermediary resistance level between current trading price and the YTD high at 2.0133. Conversely if the pair fails to hold onto its gains and starts slipping one has to be aware of future support levels, most of them are former resistance and once broken they turned into support. 2.0000 can act both ways, and while we are trading above it is more of a support level now, next we have the 1.9950 level followed closely by the 1.9900 round number, if these support level fail to bounce the pair back up we need to look lower down at the 1.9840/70 area and even lower at the all important 1.9750 level.

Resistance Levels

• 2.0200 – Round number
• 2.0133 – April 18th High
• 2.0060/70 – April 25th High

Support Levels

• 1.9840/70 – May 4th / December 1st 2006 High
• 1.9750/60 – retested level, May 11th low
• 1.9700 – May 18th Low
• 1.9670 – February 21st Low
• 1.9550 - .50 Fib

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EUR/USD Technical View
Euro recovered what has lost yesterday morning and it is trading, again, around the 1.3460 resistance. This is the 4^th consecutive day in which the pair has been confined in this small range and one can expect a decent breakout on either side but with a slight increased bearish bias, in this respect we can’t but mention the same levels as in the previous days. Closest support once the pair gets in last weeks range is the low of that range at 1.3365, if this level fails and the pair breaks bellow with we have June 13^th low at 1.3260 as the next clear cut support level followed lower by the 1.3160 .50 Fib of the February-March range. Conversely if EurUsd doesn’t break bellow 1.3365, last week’s range between 1.3365 and 1.3410 might become a base for another push north, if that happens the first bull target will be yesterday’s high at 1.3477 before possibly getting above 1.3500 and towards June 5^th high of 1.3550.

Resistance Levels

• 1.3680 – April 27th High
• 1.3630 – May 7th High
• 1.3550 – June 5th High
• 1.3459 – May 10th/11th Low

Support Levels

• 1.3365 – December 3rd High
• 1.3300 – January 7th High
• 1.3260 – February 27th High
• 1.3160 - .50 Fib of Feb-March range

GbpUsd Technical View

Cable finally managed to creep up above the 2.0000 level in Today’s Asian session after what seemed to be another failed attempt in Yesterday’s trading. As long as the par stays above 2.0000 we can confidently be on the look out for resistance levels that might slow down the move up. Just above today’s high is the 2.0060 level established on April 25^th high, which is the only intermediary resistance level between current trading price and the YTD high at 2.0133. Conversely if the pair fails to hold onto its gains and starts slipping one has to be aware of future support levels, most of them are former resistance and once broken they turned into support. 2.0000 can act both ways, and while we are trading above it is more of a support level now, next we have the 1.9950 level followed closely by the 1.9900 round number, if these support level fail to bounce the pair back up we need to look lower down at the 1.9840/70 area and even lower at the all important 1.9750 level.

Resistance Levels

• 2.0200 – Round number
• 2.0133 – April 18th High
• 2.0060/70 – April 25th High

Support Levels

• 1.9840/70 – May 4th / December 1st 2006 High
• 1.9750/60 – retested level, May 11th low
• 1.9700 – May 18th Low
• 1.9670 – February 21st Low
• 1.9550 - .50 Fib

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EUR/USD Technical View

Euro slipped lower early Today in the Asian trading session, and by the way things look now it seems that the 1.3460 level was to strong for the pair to break it. With oscillators on the daily chart in the overbought area and price being rejected at a significant resistance level, we have to be on the look out for future support levels as the bears are starting to be those in charge. Closest support once the pair gets in last weeks range is the low of that range at 1.3365, if this level fails and the pair breaks bellow with we have June 13^th low at 1.3260 as the next clear cut support level followed lower by the 1.3160 .50 Fib of the February-March range. Conversely if EurUsd doesn’t break bellow 1.3365, last week’s range between 1.3365 and 1.3410 might become a base for another push north, if that happens the first bull target will be yesterday’s high at 1.3477 before possibly getting above 1.3500 and towards June 5^th high of 1.3550.

Resistance Levels

• 1.3680 – April 27th High
• 1.3630 – May 7th High
• 1.3550 – June 5th High
• 1.3459 – May 10th/11th Low

Support Levels

• 1.3365 – December 3rd High
• 1.3300 – January 7th High
• 1.3260 – February 27th High
• 1.3160 - .50 Fib of Feb-March range

GbpUsd Technical View

Cable, after another failed attempt to get above the 2.0000 level, has also slipped lower and is trading just bellow the 1.9950. Yesterday’s price action had another try at the 2.0000 resistance but although it got above it on the lower timeframes the pair just didn’t have enough strength to close above it on the hourly charts, after that failed attempt the bears just took control and the pair has slowly reversed into a downtrend. With the current status GbpUsd is in one has to be aware of future support zones, trading bellow 1.9950 the closest support level is the 1.9900 round number, lower down we have the 1.9840/70 range and even lower is the starting point of this last leg-up at 1.9670. If any of the above mentioned support levels prove to be strong enough in order that price will halt or even bounce from them we can see another try at taking out the 2.0000 level.

Resistance Levels

• 2.0200 – Round number
• 2.0133 – April 18th High
• 2.0060/70 – April 25th High
  

Support Levels

• 1.9840/70 – May 4th / December 1st 2006 High
• 1.9750/60 – retested level, May 11th low
• 1.9700 – May 18th Low
• 1.9670 – February 21st Low
• 1.9550 - .50 Fib

EuroUsd technical View

Euro seems to have come to a halt, trading around the 1.3460 for two days now. Like we said in our previous commentaries in order for the uptrend to keep its momentum intact the pair needs to go across the 1.3500 level which it hasn’t until now. If that happens we can clearly spot the future possible targets and resistance areas, first bull target is the 1.3500 level before the June 5th high at 1.3550, once up there sights will be set on the 1.3610/30 resistance area as an intermediary target before the YTD high at 1.3680. As far as the possibility of a reversal one has to be aware of former resistance now turned support levels, a failure to get above 1.3460 and later over 1.3500 will put pressure on the pair and this will open up bearish targets, closest support areas is the 1.3365/1.3410 followed by June 13th low at 1.3260 before the the 1.3160 .50 Fib of the February-March range.

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EUR/USD Technical View

Euro continued the uptrend started on June 13^th and after a combination of quiet and more volatile days it is trading now above the 1.3460 resistance established on May 10th/11^th. The start of the week found the pair trading just under the 1.3410/60 resistance week and it took a couple of days in order for the Euro to gather enough strength to break above it. From Monday to Thursday the pair basically traded inside a new range formed between the 1.3365 support and bellow the 1.3410 resistance. After Friday’s move above the 1.3460 level the pair’s momentum has increased a bit and if we get to trade above 1.3500 in the first few days of the week it will bring more bulls to the table. First bull target is the 1.3500 level before the June 5^th high at 1.3550, once up there sights will be set on the 1.3610/30 resistance area as an intermediary target before the YTD high at 1.3680. Conversely the pair might not manage to hold above the 1.3460 level and if that happens bears will start again to put pressure and push it lower, now we have a new small range to be aware of between 1.3365 and 1.3410, a range that could be a base for future north-swings but at the moment is just an obstacle in the bears path. If Euro starts giving back some of what has gained in the last couple of weeks it will open up February 27^th High at 1.3260 as the first main short target and if price continues to go lower next support is the 1.3160 .50 Fib of the February-March range.

Resistance Levels

• 1.3680 – April 27th High
• 1.3630 – May 7th High
• 1.3550 – June 5th High
• 1.3459 – May 10th/11th Low

Support Levels

• 1.3365 – December 3rd High
• 1.3300 – January 7th High
• 1.3260 – February 27th High
• 1.3160 - .50 Fib of Feb-March range

GbpUsd Technical View

Cable put in a strong week breaking clearly out of the previous week’s range. With a single exception, Thursday when the pairs momentum took a breathing break, every day of the week was a healthy push north. The pair stopped on Friday just bellow the 2.00 level we have mentioned so many times until now, the current upside momentum is still intact but the fact that we didn’t manage to break above the 2.00 psychological level could start to worry a few longs not to mention that will probably give shorts a new opportunity to build some positions. With a new monthly high cable looks bullish enough in order for us to check future resistance levels, first and closest one is without any doubt the almighty 2.00, if Gbp has enough strength to break through it will get the pair very close to the next resistance line at 2.0060 which is the only obstacle before the YTD high at 2.0133 established on April 18^th. Even though cable has gained a lot and is on a prolonged uptrend one has to be aware of the possibility of a slowdown or even a reversal, the pair might not be able to cross decisively the 2.00 level and that will more than likely bring to a halt the upside momentum and get us into a consolidation or even a full trend reversal. Support levels that stand out are former resistance that once broken have turned into support, closest one is 1.9965 June 5^th high followed by the 1.9900 round number, lower down we have the 1.9840/70 range and even lower is the starting point of this last leg-up at 1.9670.

Resistance Levels

• 2.0200 – Round number
• 2.0133 – April 18th High
• 2.0060/70 – April 25th High

Support Levels

• 1.9840/70 – May 4th / December 1st 2006 High
• 1.9750/60 – retested level, May 11th low
• 1.9700 – May 18th Low
• 1.9670 – February 21st Low
• 1.9550 - .50 Fib

EUR/USD Technical View

Euro is confined in the 1.3365/1.3437 range after being rejected at both ends. Even though we mentioned that a failure to breach above the 1.3410/60 range will put downside pressure on the pair, it looks like it wasn’t enough to push it bellow the 1.3365 support. If this is just a consolidation faze we can expect a breakout to happen in the next couple of days maybe early next week. Previous mentioned support and resistance levels are still valid, getting bellow December’s 3^rd high at 1.3365 will add some more strength to the shorts and will open up June 13^th low of 1.3260 as the first bearish target followed by the 0.50 Fib of the Feb-march range at 1.3160. On the other hand the 1.3365 support may act accordingly and be a base point for a new upward push, if that will be the case the first target will be 1.3437 followed in closely by the 1.3460 resistance; if those two levels are surpassed the next major resistance stands at 1.3550 established on June 5^th.


Resistance Levels

• 1.3680 – April 27^th High
• 1.3630 – May 7^th High
• 1.3523 – April 16^th Low
• 1.3459 – May 10^th/11th Low

Support Levels

• 1.3365 – December 3^rd High
• 1.3300 – January 7^th High
• 1.3260 – February 27^th High
• 1.3160 - .50 Fib of Feb-March range

GBPUSD Analysis


Cable slowdown yesterday forming a doji on the daily charts but it recovered some strength early today and made a new weekly high at 1.9963 just a couple of points bellow the monthly high at 1.9965 established on June 5^th. Trading close to the 1.9965/70 resistance brings our attention over the 2.00 all important level, so a break above 1.9970 will more than likely get to touch the 2.00 psychological resistance, once there we have to analyze price action as it’s considered to be a perfect point for opening new shorts on the pair and is also a take profit target for longs; if the pair has enough momentum to get above 2.00 than we might witness a push towards the YTD high at 2.0133 in the following days. If on the other hand the pair fails to breach decisively the 1.9970 support or is rejected by the 2.00 downside pressure will start to gain and support levels will come in play, first we have the 1.9840/70 range established between May 4^th and December 1^st highs, lower down we can see the all important 1.9750 level and even lower February’s 21^st low at 1.9670




Resistance Levels

• 2.0200 – Round number
• 2.0133 – April 18^th High
• 2.0060/70 – April 25^th High

Support Levels

• 1.9840/70 – May 4^th / December 1^st 2006 High
• 1.9750/60 – retested level, May 11^th low
• 1.9700 – May 18^th Low
• 1.9670 – February 21^st Low
• 1.9550 - .50 Fib