EUR/USD Technical View

EurUsd formed a down bar on the daily charts yesterday but it has traded inside a small 50 points range since the start of the European session on Thursday, testing the 1.4700/1.4735 support area and not having enough strength to broke through it. Trading so close to a support zone makes us very cautious while we wait for a sign that will indicate either if the pair will break lower or if a new push towards the YTD highs will happen. A move below 1.4735 area and the up sloping trendline will signal a mid term bearish bias and we expect that after such a break a retest of the trendline mentioned by then turned into resistance.

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 is trading around the 2.0650 area, after coming down fast from Wednesday’s 2.0830 high. We mentioned yesterday that we see a bearish flag formation on the daily charts, and we are still inside that pattern even a move towards this week’s high points will still keep the flag intact. Rejecting from the 2.0600 area gave the pair a short term bullish out look and a move higher aiming at the 50. Fib Line at 2.0750 can be expected but the mid term looks bearish at this moment and we are just waiting for the above mentioned flag formation to trigger before beginning to search for possible entry points.

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