EUR/USD Technical View

Euro made a new high on Tuesday at 1.3854 but gave back some points in the second part of the day to close just above 1.3800. Looking at the daily chart bellow, we can see that price has been making higher highs and higher lows but 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 yesterday’s high at 1.3854, 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 peaked above 2.0650 but it retraced a bit and is now trading under the 2.0600 support level. With divergence formed on the daily charts and slowing upside momentum we can start looking for a candlestick top pattern to form in order to consider changing the long bias and start opening short trades. A move south will have to bring the pair closer to 2.0500 to give a more stronger bear signal, 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. Conversely if the pair regains some strength we might see new highs being made this week, 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.






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