EUR/USD Technical View

Euro touched the 1.4300 round number early on Monday only to be rejected and to start a move down, yesterday we approached the 1.4200 support line and today the pair broke that support and is trading just bellow it. If the US dollar has regained some strength and this will turn into a more serious retracement we are bound to start looking at the closest support levels around, the most significant support area si the former YTD high at 1.3930 but that seems pretty far at this point and between the current price and that level we only have the 1.4060 level. Looking at the daily chart below we can see that until yesterday everything looked very bullish but at this point in time the fact that we’re in overbought territory starts to put pressure on longs and adds support to the bearish side.

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 tried to move above 2.0460 but it didn’t succeed, it got very close to the 2.0500 round number yesterday but since than it started to loose ground and is now testing the 2.0365 support area. We mentioned in our previous commentary that the 2.0365 is the main bearish target and support level, with that in mind we have to wait and see if this level can be a base point for another push north, a push that will get us closer to the YTD high at 2.0650. If the 2.0365 area doesn’t hold the price above it we may witness another drop towards the 2.0200 level and a new period of consolidation between many support and resistance lines.

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

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