EUR/USD Technical View

Euro continued to push higher Tuesday and in today’s Asian session, it printed a new record high at 1.4665 just before the open of the European markets. The pair’s bullish momentum just seems to increase as it goes higher, many traders are looking at 1.5000 as a long term target for longs. On the smaller timeframes we have to take into account that the pair has already covered 110 points today and that is above its daily average so we can expect a small retracement towards the 1.4600 level which is also close to the 0.50 Fib retracement of the 1.4550/1.4665 move. A retest of the 1.4600 could give the pair just enough breathing space to resume the up move but a failure to hold the price above will shift focus towards yesterday high at 1.4575 now a support level followed closely by the 1.4550 area.

Resistance Levels

• 1.5000– round number
• 1.4665 –Nov 7th High
• 1.4500- round number

Support Levels

• 1.4300 – Sept 30th High
• 1.4000 – Round number
• 1.3930 – September 13th high
• 1.3850 – July 24th High

GbpUsd Technical View

Cable, same as the Euro, resumed the north move after a small retracement on Monday, we saw the pair bounce up from the 2.0800 level on Tuesday and continued to push higher until it got to the current trading price just below the 2.0950 intermediary resistance before the 2.1000 price target. Most of the last move up was done in the Asian session prior to the European markets open, and we feel that the pair will have a small consolidation period before making another push towards the above mentioned 2.1000 price target. Trading between the 2.0950 resistance and 2.0900 support will help the pair gather momentum so that it can reach new higher highs and perhaps touch the 2.1000 level in today’s session.

Resistance Levels

• 2.0893 –Nov 2nd High
• 2.0650 – July 24th High

Support Levels

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