EUR/USD Technical View

Euro opened the week slightly higher getting very close to the 1.3850 top but it lacked the energy to get above it. The pair has been trading above 1.3800 and so far our previous commentary is still valid, the bias is bullish, first target 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. Conversely a failure to break above 1.3850 will put downside pressure on the pair and we will, more than likely, witness a test of the 1.3750/80 support area, if this area fails to hold the pair above it the next support is the 1.3680 April 27th high followed lower down by the 1.3600 round number.

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 formed a double top yesterday, not managing to print a higher high than we saw on Friday; after that, as we can see on the charts bellow, the pair just fell through the 2.0365 support level. Yesterday’s move has continued in today’s asian session and the pair is heading towards the 2.0200 support line which should either stop or at least slow down the momentum of the drop, bellow 2.0200 we can see that the next support line is represented by April 18th high of 2.0133 which was the YTD high for a couple of months this year from April to July. If the current down move is going to be just another retracement and the 2.0200 is going to push the pair higher as it did last week we need to look at future resistance levels once again, first one that pops out while looking at the daily charts is yesterday’s high at 2.0460, above that there is the 2.0500 intermediary support before the YTD high at 2.0650. We weren’t expecting such a big correction move at this point but one has to react to what the market is ready to do, that is why we try to mention both sides of the coin, preparing ourselves for a sudden reversal.

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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