EUR/USD Technical View

Euro formed a inside bar yesterday after a mixed day when it moved lower in the first hours and managed to close a few points above the high at the end; so far today we’re getting nearer to the 1.4300 level and although the indicators on the daily charts have turned lower in an overbought area the trend still points north. Looking for important price levels, on the north side we aim for the YTD high at 1.4350 before possibly making a strong push towards the 1.4500 round number, both of these levels act as a target and as resistance levels to be aware of; conversely on the south side support is represented by the up sloping trendlines we have on our chart and Monday’s low at 1.4120 followed by the 1.4000 level.

Resistance Levels

• 1.4350 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 traded inside a small range on Wednesday trying to pierce through the 2.0500 resistance level. We are trading around the same area we were yesterday with the note that price has formed a small triangle on the 4hour chart and this is usually a continuation pattern; with this in mind we have to pay attention to price action around resistance levels, first one is this triangle high at 2.0517 followed closely by Monday night high at 2.0535, if both of them are breached we can start looking at the current YTD high at 2.0650 as the main bullish target on the charts at the moment. AS far as support areas we can see the 2.0365 level followed closely by the 2.0310-2.0325 area which proved to be a very important one in the last couple of weeks.

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