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

GbpUsd Technical View

GbpUsd failed to stay above 2.0000 in the short trading hours we’ve had so far in 2008 and although the pair hasn’t yet printed a new low this is to be expected in the next few days; momentum is clearly bearish and getting below 1.9800 round number will certainly reinforce the USD bulls trading on this pair. Closest support is the above mentioned 1.9800 zone which although was already breached briefly in yesterday’s session we haven’t yet seen a strong move under it, once that happens a small retrace to retest the zone and turn it into an resistance one will give the signal for new positions to be added on the short side.

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