EUR/USD Technical View

Euro continued the uptrend started on June 13^th and after a combination of quiet and more volatile days it is trading now above the 1.3460 resistance established on May 10th/11^th. The start of the week found the pair trading just under the 1.3410/60 resistance week and it took a couple of days in order for the Euro to gather enough strength to break above it. From Monday to Thursday the pair basically traded inside a new range formed between the 1.3365 support and bellow the 1.3410 resistance. After Friday’s move above the 1.3460 level the pair’s momentum has increased a bit and if we get to trade above 1.3500 in the first few days of the week it will bring more bulls to the table. First bull target is the 1.3500 level before the June 5^th high at 1.3550, once up there sights will be set on the 1.3610/30 resistance area as an intermediary target before the YTD high at 1.3680. Conversely the pair might not manage to hold above the 1.3460 level and if that happens bears will start again to put pressure and push it lower, now we have a new small range to be aware of between 1.3365 and 1.3410, a range that could be a base for future north-swings but at the moment is just an obstacle in the bears path. If Euro starts giving back some of what has gained in the last couple of weeks it will open up February 27^th High at 1.3260 as the first main short target and if price continues to go lower next support is the 1.3160 .50 Fib of the February-March range.

Resistance Levels

• 1.3680 – April 27th High
• 1.3630 – May 7th High
• 1.3550 – June 5th High
• 1.3459 – May 10th/11th Low

Support Levels

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

GbpUsd Technical View

Cable put in a strong week breaking clearly out of the previous week’s range. With a single exception, Thursday when the pairs momentum took a breathing break, every day of the week was a healthy push north. The pair stopped on Friday just bellow the 2.00 level we have mentioned so many times until now, the current upside momentum is still intact but the fact that we didn’t manage to break above the 2.00 psychological level could start to worry a few longs not to mention that will probably give shorts a new opportunity to build some positions. With a new monthly high cable looks bullish enough in order for us to check future resistance levels, first and closest one is without any doubt the almighty 2.00, if Gbp has enough strength to break through it will get the pair very close to the next resistance line at 2.0060 which is the only obstacle before the YTD high at 2.0133 established on April 18^th. Even though cable has gained a lot and is on a prolonged uptrend one has to be aware of the possibility of a slowdown or even a reversal, the pair might not be able to cross decisively the 2.00 level and that will more than likely bring to a halt the upside momentum and get us into a consolidation or even a full trend reversal. Support levels that stand out are former resistance that once broken have turned into support, closest one is 1.9965 June 5^th high followed by the 1.9900 round number, lower down we have the 1.9840/70 range and even lower is the starting point of this last leg-up at 1.9670.

Resistance Levels

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

Support Levels

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