EUR/USD Technical View

The pair formed an outside bar yesterday but the daily range hasn’t been that big, just over 70 points. Although we have a new record high established early today, we can’t but repeat our previous commentary because the changes in the market situation are almost unnoticeable, 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

• 1.4467 YTD High
• 1.4300- round number

Support Levels

• 1.4000 – Round number
• 1.3930 – September 13th high
• 1.3850 – July 24th High
• 1.3680 – April 27th High
• 1.3550 – June 5th High

GbpUsd Technical View

Unlike the Euro, cable has pushed higher with some momentum, breaking above the 2.0700 round number. The pair’s bullish bias prevails and a lot of traders in the market start looking at 2.1000 as the next major long target; until then we have to see how the pair reacts to the US news this week, but if the dollar doesn’t get some support we might aswell make a strong push towards that target. Conversely 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.

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