EUR/USD Technical View

Euro lost some points in Monday’s trading session but has been recovering some of them early today, the pair is trading very close to where it closed last Friday just over the 1.3800 level. With the situation at hand we can’t but just reiterate what we said in our previous commentary that the upside momentum seems to have slowed down a bit, but this is to be expected after a strong rally. For the following days we expect a break above Friday’s high at 1.3845, if price does break the above mentioned resistance the next bullish target might be the 1.3900 round number and on a longer term the 1.4000. Conversely a failure of making new highs will keep price in a consolidation period with possible signs of increased downside pressure, with that in mind bellow 1.3800 closest support level we can spot is the 1.3750 round number which if breached will give us a sign that a bigger move south might happen; lower down we have a previous resistance area now turned into strong support at 1.3660/80, this is the main mid-term bearish target.

Resistance Levels

• 1.3830 – July 18th 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 seemed to have difficulties getting above 2.0600 yesterday with 2 failed attempts but early in the Asian session the pair broke through and is now trading, again, at record highs just under 2.0650. Above the current trading price we can look at 2.0650 and 2.0700 for future resistance and levels that will act as bullish targets. We still have to be on the lookout for a possible retracement and be aware of the support levels and how the pair might react to them, closest support level is at 2.0450 followed by the 2.0365 former resistance now turned support and also a .50 Fib of the last move up. The pair’s bias is still bullish and trading should reflect that on the longer timeframes, but contrarian or bearish traders might speculate any opportunity to open new shorts to add downside pressure to the pair in hope that this will trigger a south move.

Resistance Levels

• 2.0700- round number
• 2.0650 – round number

Support Levels

• 2.0360 – July 11high
• 2.0200 – Round number
• 2.0133 – April 18th High
• 2.0060/70 – April 25th High