EUR/USD Technical View

Euro traded between the 1.4800 support and 1.4900 resistance levels on Monday and has done so in today’s Asian session, both of the levels mentioned proved to be significant ones. While trading above 1.4800 the pair maintains its bullish bias but we have to be careful as we are in an overbought area on the daily charts and downside pressure is increasing. Getting above yesterday’s highs and above the 1.4900 round number will open up last weeks high at 1.4966 as the next target before the 1.5000 psychological level. Conversely a slip under 1.4800 will shift focus towards the 1.4700/1.4735 support area which is seen as the closest and most important place where a down move can find a base for reversal.

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 moved higher on Monday forming higher highs, and although the move didn’t have that much energy the pair touched the 2.0750 area early in the Asian session before starting to retrace to yesterday’s mid point at 2.0675. Cable looks like its trying to find some momentum for another leg up aiming at the 38.2 Fib line at 2.0840 before getting close once again to the 2.1000 area. Failure to break decisively above the 2.0775 resistance will push the pair lower or at least we’ll see a consolidation range while gathering momentum.

Resistance Levels

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

Support Levels

• 2.0460 – August 3rd High
• 2.0365 – September 12th High
• 2.0200 – Round number