EUR/USD Technical View

EurUsd printed, again, a new record high on Wednesday at 1.4728 after an almost 200 points gain based mostly on a piece of fundamental news regarding China’s currency reserve. The pair broke above a trendline that for a short period of time looked like it might offer some resistance and once it got above EurUsd never looked back while pushing higher. WE saw a retracement in the second part of the day to the 0.50 Fib of the daily average but that just gives buyers a better place to go long, aiming again for the current YTD high at 1.4728. We have to be careful in the next few hours as there is another piece of news coming out today just before the start of the NY session, the ECB interest rate announcement that move the price substantially.

Resistance Levels

• 1.5000– round number
• 1.4728 –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

Also benefiting for the weaker US dollar GbpUsd touched and broke above 2.1000 a level seen by many including us as the main short term bullish target. Price action on Wednesday was very similar to that of the EurUSd, cable printed high after high and in the final hours it retraced towards the 0.50 Fib Line where it found some support that allowed bullish traders to reload. We also have to wait for the UK central bank decision regarding rates that comes out in a few hours, a decision that could have a significant impact on the markets depending whether they will cut or the lingo used in the statement. The pair has been trading around the 2.1000 level for the last hours and it looks like its taking a breather after the violent moves this week.

Resistance Levels

• 2.1065 – Nov 7th High
• 2.0893 –Nov 2nd High

Support Levels

• 2.0650 – July 24th High

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