EUR/USD Technical View

Euro resumed last weeks overall down trend on Monday, it slowly moved lower until it got close to Friday’s low at 1.4037 and it slipped a few points lower in Today’s Asian session. Although it broke under the 1.4060 support line until we see a breach of the 1.4000 round number it is safe to say that this move is just part of a retracement, and the 1.4000 area should be a good place to see whether the bulls have any more strength or not, if its the later the next support level is at 1.3930 followed closely by the 1.3850 previous highs. Conversely a bounce of the 1.4000 round number will bring new long positions that will most likely push the pair higher perhaps they will be strong enough so that we can see a new record high above the current YTD high at 1.4300.

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 didn’t move much on Monday, but it managed to slip about 100 points and trade below 2.0365 , considering last weeks move and yesterday’s one we are now in a consolidation period and even though we saw intraday movements that broke either a support or a resistance level the price action seems to hover around these levels as neither bulls or bears have enough strength to make a decisive move. On the south side while below the 2.0365 level we have to look at the 2.0200 round number as the next support area while on the other side we have the 2.0460 early August double top and the 2.0500 round number as the most important resistance levels the pair has to breach. We advise caution for the moment until things get a little bit more clearer.

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