EUR/USD Technical View

After it started to move lower in Tuesday’s Asian session the pair bounced back up before it got close to the 1.4000 round number and it pushed higher ever since and is now trading above 1.4130 and it seems that we might see it make a weekly high later on today. Looking for possible resistance we have to pay attention to the 1.4175 area which is the .50 % Fib of the last leg down, this level is the only significant resistance until the YTD high at 1.4300. At this time one can safely say that the bullish momentum is increasing and the pair has a great probability that will move further north.

Resistance Levels

• 1.4300 YTD High
• 1.4200- round number

Support Levels

• 1.3930 – September 13th high
• 1.3850 – July 24th High
• 1.3680 – April 27th High
• 1.3550 – June 5th High

GbpUsd Technical View

Cable moved lower yesterday but only until it reached the 2.0255 area where it found some decent support from a down sloping trendline; after that it started to move higher and higher closing the day just below the 2.0400 round level only to pick up again where it left off yesterday and push towards the first bullish target and resistance level at 2.0460, a place where we are right now. A continuation of this move will bring us very close to the 2.0500 round number where the pair should be facing some strong resistance as that is a good place for the bears to open new shorts, if the bullish momentum proves to strong and we get above 2.0500 than the next obvious target is the current YTD high at 2.0650. AS far as support levels are concerned, closest one is at 2.0365 followed by Yesterday’s low at 2.0255 before the stronger 2.0200 round number.

Resistance Levels

• 2.0650 – July 24th High
• 2.0460 – August 3rd High
• 2.0365 – September 12th High

Support Levels

• 2.0200 – Round number
• 2.0000 – Round number

• 1.9670 – May 21st low
• 1.9550 – previously tested support