EuroUsd technical View

Euro seems to have come to a halt, trading around the 1.3460 for two days now. Like we said in our previous commentaries in order for the uptrend to keep its momentum intact the pair needs to go across the 1.3500 level which it hasn’t until now. If that happens we can clearly spot the future possible targets and resistance areas, first bull target is the 1.3500 level before the June 5th 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. As far as the possibility of a reversal one has to be aware of former resistance now turned support levels, a failure to get above 1.3460 and later over 1.3500 will put pressure on the pair and this will open up bearish targets, closest support areas is the 1.3365/1.3410 followed by June 13th low at 1.3260 before the 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, following in the footsteps of its European counterparts, has also slowed down despite the big upwards momentum it hasn’t been able to break above the 2.00 resistance level. We are basically trading at the same level as Friday and we can’t but mention the same scenario and technical levels given th situation at hand. Even though cable has gained a lot and is on a prolonged uptrend one has to be aware of the slowdown and 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 period 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 5th 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. Breaking above the 2.00 level will open up 2.0060 as the first bull target before the YTD high at 2.0133 made on April 18th.

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