EUR/USD Technical View

Euro slipped lower early Today in the Asian trading session, and by the way things look now it seems that the 1.3460 level was to strong for the pair to break it. With oscillators on the daily chart in the overbought area and price being rejected at a significant resistance level, we have to be on the look out for future support levels as the bears are starting to be those in charge. Closest support once the pair gets in last weeks range is the low of that range at 1.3365, if this level fails and the pair breaks bellow with we have June 13^th low at 1.3260 as the next clear cut support level followed lower by the 1.3160 .50 Fib of the February-March range. Conversely if EurUsd doesn’t break bellow 1.3365, last week’s range between 1.3365 and 1.3410 might become a base for another push north, if that happens the first bull target will be yesterday’s high at 1.3477 before possibly getting above 1.3500 and towards June 5^th high of 1.3550.

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, after another failed attempt to get above the 2.0000 level, has also slipped lower and is trading just bellow the 1.9950. Yesterday’s price action had another try at the 2.0000 resistance but although it got above it on the lower timeframes the pair just didn’t have enough strength to close above it on the hourly charts, after that failed attempt the bears just took control and the pair has slowly reversed into a downtrend. With the current status GbpUsd is in one has to be aware of future support zones, trading bellow 1.9950 the closest support level is 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. If any of the above mentioned support levels prove to be strong enough in order that price will halt or even bounce from them we can see another try at taking out the 2.0000 level.

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