Tuesday’s Jan 8th midday analysis -13.00 GMT

EurUsd traded so far insde yesterday’s small range and only covered just above 50 pips from the opening low to the 1.4736 high. The pair seems to be in a build up period that result in a break out, most likely in the Us session, a retest of the 1.4800 resistance line is to be expected if we break above the 1.4736 level, that we see marked on the chart below with a trendline.

GbpUsd pushed higher in the Asian session and appears to have formed a bearish Gartley pattern on the 1 hour timeframe, a break under the 1.9750 support zone will confirm this and we expect the pair to challeange yesterday’s lows, conversely a failure to do so will bring the pair closer to the 1.9800 level and today’s high of 1.9826.

EUR/USD Technical View

Euro confirmed our bearish expectations on Monday and moved below 1.4700 although the strength of the move wasn’t big we saw the pair print a low of 1.4655 before bouncing back up in today’s Asian session. As long as the 1.4750 level stays unchallenged we maintain our bearish bias and expect a continuation south, but if the pair starts to trade closer to the 1.4750-1.4800 resistance area we think that EurUSd will enter into a consolidation period and those are more of a continuation pattern than a reversal one, so the chances of going higher increase significantly.

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 7th midday analysis -13.00 GMT

Euro continued the down move started on Friday afternoon and opened the week moving lower, breaking the 1.4700 support level after a second try late in the Asian session. The pair found support around the 1.4660 area and is now retesting, the former support now turned into resistance, just above the 1.4700 round number. We maintain the bearish view on this pair as as long as the resistance level hold the downside pressure will push the quote lower towards today’s lows.

GbpUsd moved below the 1.9700 level early in the day but bounced right back above towards the 1.9750 level which is Friday’s middle range. We saw a lower low being formed today that supports our bearish sentiment and without any unexpected events later in the day the pair has a fair chance of testing the lows at 1.9650.

EUR/USD Technical View

Euro recovered in the last week of 2007 and got above 1.4700 where the pair traded in the past few days, and formed a hammer candle on the weekly chart(as seen below). While we are trading below Friday’s high at 1.4830 we maintain our bearish bias on this pair and expect a move lower aiming at first for the 1.4600 area as an intermediary target before the 1.4300 December low. EurUsd is trading in an overbought area close to a strong resistance level on the daily chart and this is one of the facts that makes us think the pair is going to go lower. Conversely a move above Friday’s high will certainly be a blow to shorts and perhaps shift focus towards the psychological target of 1.5000, a target we failed to reach in November.
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 4th midday analysis -13.00 GMT

Euro traded just above the 1.4700 level for most of today’s session waiting for the NFP release, the par fas traded calmly getting closer and closer to the support level but not managing to break below as the upcoming are important and could change the mid term perspective.

GbpUsd failed to perform as expected, although it briefly got below 1.9700 the 9.30 GMT UK news helped pushed the pair for a new retest of the 1.9800 resistance and now we are trading roughly at the 50. Fib line of today’s 125 pont move; also the upcoming NFP release will have an impact on the pair and will determine the direction for the remainder of the session.

EUR/USD Technical View

Euro is trading at the exact same spot where it was when we issued out our previous daily commentary, only today the pair is moving slightly downwards after touching the resistance line offered by the upsloping trendline we have marked on our charts, as seen below. The situation hasn’t changed that much, we are still trading in an overbought area on the daily charts and we are below a major resistance area, if the pair doesn’t manage to break this resistance and push higher we maintain our bearish bias and expect a move towards the December low at 1.4300.

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 3rd midday analysis -13.00 GMT

EurUsd found intraday support at the 1.4700 round number and pushed higher making a new weekly high but failling to break decisively above the resistance provided by the upsloping trendline we have mentioned on our previous commentary.

GbpUsd moved lower in the Uk session breaking below 1.9800 and finding support at a trendline connecting yesterday’s lows; after that the pair witnessed a short retrace towards the middle of its 130 point range it covered today. A retest of the 1.9800 area, now turned into resistance, is likely to happen later on in the US session.

EUR/USD Technical View

Euro has started the new year trading very close to the 1.4735 resistance and is starting to give us a bearish sentiment, as we can see clearly on the chart below the daily charts have entered into an overbought area while trading just under an important resistance zone. While below 1.4735 and the upsloping trendline we have marked on our charts it is safe to say that bears have a bigger chance of taking over in the next few days. Getting back to regular trading after the holidays is always tricky, the market has to find it’s rhythm again and fall back into the everyday path.
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 Dec 20th midday analysis -13.00 GMT

EurUsd failling to print a new low in yesterday’s US session gave bulls enough reason to push the pair higher and so it touched the 1.4400 intraday resistance and after that we saw a small retracement towards the 50.0 Fibonacci of yesterday’s trading renage. We may a second attempt at the 1.4400 level in today’s remaining trading hours.

GbpUsd traded inside Thursday’s range, and after it didn’t manage to break a new low we are trading just under the 1.9900 resistance and chances are the pair will head higher in the US session.

EUR/USD Technical View

Euro failed to reach the 1.4300 round number on Thursday and stopped only pips away; after that the pair bounced back and in today’s Asian session we saw it make an intraday high at 1.4400. Unless something unexpected happens we think we are going to trade around the current levels at least until the US session when we could see a stronger move forming. Looking for support and resistance level we have to take into consideration the current weeks high and low at 1.4450 and 1.4310 respectively as the closest levels that need to be broken for the pair to move either way.
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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