EUR/USD Technical View

Euro is confined in the 1.3365/1.3437 range after being rejected at both ends. Even though we mentioned that a failure to breach above the 1.3410/60 range will put downside pressure on the pair, it looks like it wasn’t enough to push it bellow the 1.3365 support. If this is just a consolidation faze we can expect a breakout to happen in the next couple of days maybe early next week. Previous mentioned support and resistance levels are still valid, getting bellow December’s 3^rd high at 1.3365 will add some more strength to the shorts and will open up June 13^th low of 1.3260 as the first bearish target followed by the 0.50 Fib of the Feb-march range at 1.3160. On the other hand the 1.3365 support may act accordingly and be a base point for a new upward push, if that will be the case the first target will be 1.3437 followed in closely by the 1.3460 resistance; if those two levels are surpassed the next major resistance stands at 1.3550 established on June 5^th.


Resistance Levels

• 1.3680 – April 27^th High
• 1.3630 – May 7^th High
• 1.3523 – April 16^th Low
• 1.3459 – May 10^th/11th Low

Support Levels

• 1.3365 – December 3^rd High
• 1.3300 – January 7^th High
• 1.3260 – February 27^th High
• 1.3160 - .50 Fib of Feb-March range

GBPUSD Analysis


Cable slowdown yesterday forming a doji on the daily charts but it recovered some strength early today and made a new weekly high at 1.9963 just a couple of points bellow the monthly high at 1.9965 established on June 5^th. Trading close to the 1.9965/70 resistance brings our attention over the 2.00 all important level, so a break above 1.9970 will more than likely get to touch the 2.00 psychological resistance, once there we have to analyze price action as it’s considered to be a perfect point for opening new shorts on the pair and is also a take profit target for longs; if the pair has enough momentum to get above 2.00 than we might witness a push towards the YTD high at 2.0133 in the following days. If on the other hand the pair fails to breach decisively the 1.9970 support or is rejected by the 2.00 downside pressure will start to gain and support levels will come in play, first we have the 1.9840/70 range established between May 4^th and December 1^st highs, lower down we can see the all important 1.9750 level and even lower February’s 21^st low at 1.9670




Resistance Levels

• 2.0200 – Round number
• 2.0133 – April 18^th High
• 2.0060/70 – April 25^th High

Support Levels

• 1.9840/70 – May 4^th / December 1^st 2006 High
• 1.9750/60 – retested level, May 11^th low
• 1.9700 – May 18^th Low
• 1.9670 – February 21^st Low
• 1.9550 - .50 Fib