EUR/USD Technical View
Euro recovered what has lost yesterday morning and it is trading, again, around the 1.3460 resistance. This is the 4^th consecutive day in which the pair has been confined in this small range and one can expect a decent breakout on either side but with a slight increased bearish bias, in this respect we can’t but mention the same levels as in the previous days. 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 finally managed to creep up above the 2.0000 level in Today’s Asian session after what seemed to be another failed attempt in Yesterday’s trading. As long as the par stays above 2.0000 we can confidently be on the look out for resistance levels that might slow down the move up. Just above today’s high is the 2.0060 level established on April 25^th high, which is the only intermediary resistance level between current trading price and the YTD high at 2.0133. Conversely if the pair fails to hold onto its gains and starts slipping one has to be aware of future support levels, most of them are former resistance and once broken they turned into support. 2.0000 can act both ways, and while we are trading above it is more of a support level now, next we have the 1.9950 level followed closely by the 1.9900 round number, if these support level fail to bounce the pair back up we need to look lower down at the 1.9840/70 area and even lower at the all important 1.9750 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