EUR/USD Technical View

The pair formed a down bar on Tuesday but at this moment we are trading at the same levels we were yesterday morning, the situation hasn’t changed at all. A failure to break new highs will most likely bring the pair into a consolidation period, but as far as we are trading above the 1.4000 support level the bias is still bullish. In the following days we could see more weakness in the US dollar that will push the EurUsd quote higher, at first above 1.4240 area than closer to the 1.4300 round number which is the current YTD high. At this point the market have slowed down a bit and most traders seem to be waiting for something to happen later on this week and for the rest of the month, something that will help decide the trend direction more clearly.

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

Same as with the Euro, cable is trading at the same levels it was when we wrote our previous commentary, just under the 2.0365 level, although yesterday we were coming from above towards the support now we are inching higher towards the resistance. The bullish flag on the daily charts is still valid, we just have to wait until it confirms by breaking to the upside, a more aggressive method of trading this would be to enter long on the lower part of the flag, it may produce better results but the risk of failure is greater. Conversely if the current move south has enough momentum we should look at the 2.0250 level which is the first bearish target and intermediary support level before the 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