EUR/USD Technical View

Euro opened with a small gap on Sunday night and printed a record high early on Monday at 1.4440, after that the pair slipped lower and one could say that it filled the gap. Price action seems to have slowed down a bit, even with the new high being made, traders are waiting for tomorrows FOMC meeting to see whether the US dollar will get a rate cut and how big it will be. With a new YTD high being established the bias is still bullish and the closest target is the 1.4500 round number, which at the moment doesn’t seem that far away. If the US dollar gets some positive news focus should be shifted towards the support areas, first one is the 1.4300 round number followed by the support offered by the ascending trendline we have on our chart below.

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 pushed higher yesterday and in today’s trading hours it reached our projected target of 2.0655 which was also the previous YTD high established in July. The pair’s bullish momentum continues to be strong but now we have a strong resistance level ahead, if it gets above it a push towards the 2.0700 round number might be in place and depending on the US news either a move higher or a consolidation period if not a more serous retracement. If the US dollar regains some of its lost strength we could see a retracement happening and pushing the pair lower towards the 2.0460 high established on August 3rd and even lower aiming for the 2.0330 support area, where the pair found a strong base this month. At this time its hard to say what is going to happen next even though the bullish momentum prevails, we advise trading carefully until the news gets out tomorrow evening.

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