EUR/USD Technical View

Euro recovered some ground the past week, and is now, again, close the the YTD high of 1.3850. The week started good with a 100 points up move but the middle of the week was rather undecided the pair needed some time to gather enough energy to go above the 1.3680/1.3700 resistance area. Thursday was the decisive day and that move was continued on Friday with the support of some fundamental news releases that pushed the pair to a high of 1.3820, although Friday’s close was 40 pips of the high the bias still looks bullish. First bull target for next week is the YTD high established on July 24th at 1.3850, once EurUsd clears this resistance we have to look at 1.3900 as an intermediary resistance before the 1.4000 round number. Looking at the weekly chart bellow one can see that an inside bar has formed, that can be interpreted either way, both as a bullish and as bearish signal, the important thing is to see which way it will break out; if in the following days Euro slips lower and gets below the 1.3680 resistance we will have to pay very close attention to price action around the 1.3600 level, because a break of that low will reinforce the bears in the market and this will possible trigger a much stronger move south.

Resistance Levels

• 1.4000 -round number
• 1.3850 – July 24th High
• 1.3750 – round number

Support Levels

• 1.3680 – April 27th High
• 1.3550 – June 5th High
• 1.3459 – May 10th/11th Low
• 1.3365 – December 3rd High

GbpUsd Technical View

Cable bounced from the 2.0200 resistance when markets opened last Sunday night and after a first failed attempt to cross above 2.0365 on Tuesday, the pair managed to print a week high at 2.0460 and closed just above the 2.0400 resistance. Same as the Euro, sterling seems to have retraced to a strong support level and is now starting to resume its uptrend, a continuation of the past weeks move will get the pair closer to the 2.0500 level before making a push towards July 24th record high at 2.0650, that being the main bull target we can spot on the charts. Making higher highs in the following days should be enough to reinforce our believes in the trend strength, especially if we were looking at the weekly charts where that big down bar looks threatening. One has to be aware of the possibility of a down move, and in that respect we have to look and see where price might find support that can either slowdown or reverse such a move; bellow 2.0400 we have the 2.0365 level which has already proven to be an important one, if this level can’t stop a down move the next significant support level is early July highs of 2.0200 followed by April 18th high of 2.0133.

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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