EUR/USD Technical View

Euro continued as expected and move higher yesterday establishing a new high at 1.4160; the daily chart below shows that the upside momentum has slowed down a bit but the overall bias is still on the long side. There is still time for the pair to reach the 1.4200 level this week, a level which at the moment is both a significant bullish target and the closest resistance we can spot on the charts. As far as possible support level are concerned, closest one is yesterday’s low at 1.4060, if the pair enters into a consolidation period that is the level to watch, if we stay above it the bullish trend is still safe; the next support level is the 1.3930 followed by the 1.3850 area, both of them are viable targets for a bigger retracement or even a trend reversal at this point.

Resistance Levels

• 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 is yet again confirming its indecision, after it dropped towards the 2.0100 level yesterday it has recuperated most of the loss in the second part of the day only to start slipping again in todays trading hours, we are trading just above yesterdays lows at the 2.0100 support level, if it manages to break lower one could expect the move to continue at least to the 2.0000 round number if not lower towards the 1.9900 area which is last weeks low and also a strong support zone. The pair has now reentered into the 2.0200/2.000 range and that forces us to once again wait for it to give us a clear sign that it will break out one way or the other. We can’t but to reiterate what we said in our previous commentary that the safest thing to do right now is to wait patiently for a more directional move, one that will have enough momentum to break decisively out of this range.

Resistance Levels

• 2.0650 – July 24th High
• 2.0460 – August 3rd High
• 2.0365 – September 12th High

• 2.0200 – Round number

Support Levels

• 2.0000 – Round number
• 1.9670 – May 21st low
• 1.9550 – previously tested support