EUR/USD Technical View

Euro formed a doji like bar on the daily charts yesterday, and so far in today’s trading hours it hasn’t moved that much, the pair is trading just bellow the 1.3680 resistance so we, like we mentioned in yesterday’s commentary, just have to wait and see which way it will break above 1.3680 or bellow 1.3600. If the downside pressure starts to build up we will witness a retest of the 1.3600/15 support area and if the pair manages to break bellow it, a push towards the next bear target around 1.3550/60 and even lower at 1.3460. If on the other side euro manages to recover some strength a move above 1.3700 might in play and if the pair manages to clear yesterday’s high at 1.3725 we will have to focus our attention on future resistance levels because another push towards the 1.3850 highs might be in play, closest resistance is the 1.3750 level that could act as intermediary resistance before a push towards July 24th highs at 1.3850.

Resistance Levels

• 1.3830 – July 18th High
• 1.3750 – round number
• 1.3680 – April 27th High

Support Levels

• 1.3550 – June 5th High
• 1.3459 – May 10th/11th Low

• 1.3365 – December 3rd High

GbpUsd Technical View

Cable tested the 2.0200 support line briefly yesterday and than it bounced back up and same as EurUsd formed a doji bar on the daily charts, currently we are trading just around the 2.0300 level. Looking at the situation on the charts we just have to repeat our previous comments that the pair needs to break outside of the 2.0200/2.0365 range in order to see a much clearer move. If the south move is going to continue we should see a break bellow the 2.0200 support either today or tomorrow, if that happens the next support is April 18th high of 2.0133 before the 2.0000 round number. If the 2.0200 proves to be to strong and the pair doesn’t get bellow it we might see the pair being range bound between 2.0200 and 2.0365; the short term bias is to the south but price needs to break the above mentioned support in order for us to be more relaxed about opening new trades. Of course one has to take into consideration that a new bounce from the 2.0200 level might push the pair to retest the 2.0365 resistance and even have enough energy to get above it, with that in mind closest resistance is the 2.0400 followed by the 2.0500, both of them are intermediary levels before the pair gets close enough to July 24th record high at 2.0650.
Resistance Levels

• 2.0700- round number
• 2.0650 – July 24th High
• 2.0360 – July 11high

Support Levels

• 2.0200 – Round number
• 2.0133 – April 18th High
• 2.0060/70 – April 25th High

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