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EUR/USD Technical View

EurUsd put in another interesting week, as far as movements and volatility are concerned, it opened moving lower due to the US holiday and after an above average move on Monday the pair continued on Tuesday until the FED interest rate announcement that pushed EurUsd much higher above 1.4600, the weeks high was established on Thursday at 1.4778, the close on Friday found the pair trading just 70 points of the Sunday night open, at 1.4670. After failing to reach the 1.4300 support area we can see a higher low being formed and slowly we can see the pair has traded inside a 600 points range for the past few months and with the current market bias we can expect to test once again the 1.4900 resistance zone, and, if the pair has enough strength perhaps make a push toward the 1.5000 psychological target. Conversely on the south side the main resistance is now the area just above 1.4300 uo to 1.4360, a break of this will give bulls an important blow and bearish traders will have a great opportunity to open new positions.

Resistance Levels

• 1.5000– round number
• 1.4966- Nov 23rd high
• 1.4735 –Nov 9th High

Support Levels

• 1.4500- round number
• 1.4300 – Sept 30th High
• 1.4000 – Round number
• 1.3850 – July 24th High

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Thursday’s Jan 24th midday analysis -13.00 GMT

Euro found an intraday support base at the 1.4600 level and moved toward yesterday’s at 1.4685; moving higher will get the pair closer to the 1.4700 resistance level and if that gets breached we could see the 1.4825 bullish target touched. This scenario will of course be denied if the resistance levels hold and the pair forms a short term double top that will give bears a new opportunity to short.

GbpUsd tested the 1.9500 support and slowly started to move higher and it has already pipped a new weekly high, if the pair has enough strength to hold above 1.9600 we could see the 1.9670 resistance being touched later in the afternoon.

EUR/USD Technical View

EurUsd is trading at the same level it was when we wrote our previous daily commentary, the pair moved lower in yesterday’s afternoon trading hours but then retraced back up above 1.4600 after finding support at the 1.4500 level. The markets are still undecided after the events we’ve witnessed this week and apparently many are still expecting the FED to cut interest rates again, and until that situation gets some clarification trading will be difficult, the battle between bulls and bears will keep the pair trading close to the current levels.
Resistance Levels

• 1.5000– round number
• 1.4966- Nov 23rd high
• 1.4735 –Nov 9th High

Support Levels

• 1.4500- round number
• 1.4300 – Sept 30th High
• 1.4000 – Round number
• 1.3850 – July 24th High

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Wednesday’s Jan 23rd midday analysis -13.00 GMT

EurUsd has retraced towards the middle point of yesterday’s range after finding resistance at the 1.4670 area, looking at last weeks chart we can see that around the mentioned level the pair formed a consolidation pattern, this indicates the importance of the former support turned into resistance zone. Without any more surprises we expect the pair to resume its down trend especially while we are trading below 1.4600.

GbpUsd failed to stay above 1.9600 and after forming a bearish divergence on the smaller timeframes we already saw a test of the 1.9500 support level, if this is breached we expect to retest yesterday’s low at 1.9330 on the way to the bigger bearish target of 1.9180.

EUR/USD Technical View

EurUsd recovered in yesterday’s session all the points it lost on Monday and than some; after starting the day moving lower the pair bounced from the 1.4360 area and support by fundamental reasons, mainly the FED 0.75% interest rate cut, it pushed higher forming an outside bar on the daily charts and printing a weekly high just below 1.4700. Yesterday’s price action was an pretty interesting, what seemed to be a retracement to a resistance line turned into a large scale move of more 300 points; today’s development could be just as important as the markets are still under the influence of the FED decision and not everyone is completely sold on the lack strength or more likely the weakness of US dollar at the current interest rates. One should trade very carefully these days as we already saw the situation can change very quickly.

Resistance Levels

• 1.5000– round number
• 1.4966- Nov 23rd high
• 1.4735 –Nov 9th High

Support Levels

• 1.4500- round number
• 1.4300 – Sept 30th High
• 1.4000 – Round number
• 1.3850 – July 24th High

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Monday’s Jan 21st midday analysis -13.00 GMT

EurUsd broke below the 1.4600 support level and pushed through toward the 1.4450 zone covering more than 140 points in today’s Asian and European session. After such a big drop on a day when we weren’t expecting big volumes we should look for some retracement move for the Us session or at least a slow down and a consolidation just below 1.4500.

GbpUsd traded aroun dthe 1.9500 for most of the day with only one small spike that printed today’s low at 1.9456. After breaking and retesting a support trendline last night just above the 1.9550 area the pair started once again to move lower but with diminished momentum.

EUR/USD Technical View

EurUsd failed to print a new high on the weekly chart, it stopped just under the November 23rd high at 1.4966 at the resistance offered by the trendline that connects August and September 2007 swing lows. Breaking the weekly movement on a daily basis we see that Monday the pair pushed higher and although it made a new high on Tuesday after that we had a straight down move supported by a speech from an ECB banker and the fact the EurUsd was trading in an overbought area. The weekly low was made on Thursday at 1.4587 and after that we saw the bearish momentum slowing down and the pair closed just above 1.4600. We maintain our bearish bias for the following days with the mention that Monday is a holiday in the US and trading might be slow; perhaps the most important bearish target is December 20th low at 1.4300 which is also an important support level a place where bullish traders will want to use as a base for a repeat of December’s movement.
Resistance Levels

• 1.5000– round number
• 1.4966- Nov 23rd high
• 1.4735 –Nov 9th High

Support Levels

• 1.4500- round number
• 1.4300 – Sept 30th High
• 1.4000 – Round number
• 1.3850 – July 24th High

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EUR/USD Technical View

EurUsd lacked the strength to push through the 1.4600 support level so far, yesterday we saw the par print a new weekly low but it didn’t have the stamina to continue the move form Wednesday. We are pretty much in the same place as yesterday morning, the pair is trading just above the 1.4600 level and is trying to get lower, a break below 1.4600 will confirm the current bearish momentum and will get us closer to the 1.4500 level, the next significant target and support level. Conversely a bounce back from here will bring the pair right back in the 1.4600/1.4835 congestion area.
Resistance Levels

• 1.5000– round number
• 1.4966- Nov 23rd high
• 1.4735 –Nov 9th High

Support Levels

• 1.4500- round number
• 1.4300 – Sept 30th High
• 1.4000 – Round number
• 1.3850 – July 24th High

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Thursday’s Jan 14th midday analysis -13.00 GMT

EurUsd printed a new weekly low this morning just under the 1.4600 level but after that it started retracing toward yesterday’s 50% Fibonacci line at 1.4730 which is also where we have marked on our chart a downsloping trendline connecting Wednesday and Thursday’s highs; the resistance at that level should be enough to turn the pair back down toward the lows.

GbpUsd failed to make a higher high today and bounced back and forth between 1.9600 support and 1.9700 resistance at the moment is trading right in the middle of this range. We expect the pair to at least test the 1.9600 support if not to go a little lower toward the 1.9550 zone.

EUR/USD Technical View

Euro confirmed the bearish pattern formed on Tuesday and the pair fell sharply on Wednesday supported also by some dovish commentaries from and ECB banker. Yesterday’s range was over 250 points, we haven’t seen such a long candle since mid December, it broke through the closest intermediary support levels and only stopped and bounce back a little around the 1.4600 zone which is also the 61.8 Fibonacci line of the bigger move north from last year. A break below 1.4600 will confirm the current bearish momentum and will get us closer to the 1.4500 level, the next significant target and support level. Conversely a bounce back from here will bring the pair right back in the 1.4600/1.4835 congestion area.
Resistance Levels

• 1.5000– round number
• 1.4966- Nov 23rd high
• 1.4735 –Nov 9th High

Support Levels

• 1.4500- round number
• 1.4300 – Sept 30th High
• 1.4000 – Round number
• 1.3850 – July 24th High

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