EUR/USD Technical View

Euro opened the week testing the 1.3600 resistance but it didn’t have the strength to continue lower so it bounced up towards the 1.3700 level around which is trading at the moment. If the pair manages to hold above the 1.3680/1.3700 support area 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. Conversely, yesterdays move might just have been a reaction after a first failed attempt to breach bellow 1.3600, if EurUsd is going to be pushed lower and the 1.3680/1.3700 area doesn’t hold we will see another test of the 1.3600/15 area followed probably by a move towards the 1.3550/60 support.

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 when it opened Sunday night but it lacked the strength to go bellow it so it bounced back towards the 2.0365 resistance line. We did mention in out previous commentary that the pair might stop its downfall at the 2.0200 and either start a consolidation period or bounce back up, so far either scenarios could happen, in order that yesterday’s move to be part of that bounce move we still need to make higher highs and get above 2.0365, if that won’t happen the pair might slip lower down and retest the 2.0200 support before a new move starts. A failure to hold on to yesterday’s gains will start to put additional pressure on cable and we might see a break of the 2.0200 support level if that happens the next support is April 18th high of 2.0133 before the 2.0000 round number. If on the other hand cable managed to get closer to 2.0365 and even break above it we have to pay attention to all those support levels the pair broke last week as they have turned now into resistance levels, closest one 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

Support Levels

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