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

GbpUsd Technical View

GbpUsd continued on Tuesday morning the move started on Monday but all of a sudden it reversed on a dime and pushed higher, at first seemed to be a retest of the 1.9500 resistance but when the FED interest rate cut announcement got out the pair moved another 150 points to print a daily hight at 1.9650. We were on right with our assessment that a break under 1.9550 will open up the road toward the 1.9180 target but one couldn’t have foreseen the rather surprising move from the US central bank; looking at the chart below we see that yesterday’s high was pretty close to the 38.2 Fibonacci retracement line of the 1.9790/1.9337 down move and with the oscillators already in overbought territory the bearish bias is still present, and US dollar bulls might not be shaken by the latest developments. A move above yesterday’s high at 1.9650 will certainly give bulls a chance to open new trades but the same is true for bears if the pair continues to slip. Caution is of the essence as more surprises could lie ahead.

Resistance Levels

• 2.1148 – Nov 9th High
• 2.1065 – Nov 7th High
• 2.0650 – July 24th High

• 2.0365 – September 12th High

Support Levels

• 2.0000 – Round number
• 1.9800 – Round Number
• 1.9670 – August 17th Low
• 1.9180