EUR/USD

Euro, again, traded inside a very small trading range yesterday and so far today it stayed pretty much in the same range, not being able to get bellow Tuesday’s low of 1.3510 the down move has clearly lost some of its power. Like we said in our previous commentaries not clearing the current levels and not breaking the support at 1.3523/50 might signal a potential reversal to a more bullish development; if that is the case we have to pay attention to May 7^th high of 1.3630 as first resistance followed in closely by the 1.3668 level which has been the main resistance against price making new historic highs. If on the other hand price slips bellow the current support zone and takes out May 8^th low of 1.3510 we have the March 2005 high of 1.3483 as a possible target, then March 21^st high of 1.3410 and December 3^rd high of 1.3365 as significant support zones, as price gets to each of these levels we will reassess the situation and act accordingly.




Resistance Levels

• 1.4532 – March 2005 High
• 1.3668 – December 2004 High
• 1.3630 – May 7^th High

Support Levels

• 1.3523 –April 16^th Low
• 1.3483 –March 2005 High
• 1.3410 – March 21^st High
• 1.3365 – December 3^rd High
• 1.3300 – January 7^th High
• 1.3260 – February 27^th High

GBPUSD Analysis

Cable had an interesting trading day on Wednesday, covering around 115 pips, after it made a strong move from 1.9883(a higher low) to 2.00 it retraced to the moves 0.50 Fib level after it failed to break through 2.00. We are again trading very close to the 2.00 level which could overshadow the nearer support and resistance technical levels, like the high of 1.9975 made on Monday May 7^th. If the pair is to find some strength and it manages to get and stay above 2.00 the next resistance level is in the 2.0060/70 area before the YTD high of 2.0133 which still represent a strong target for bulls. Bellow the current trading price we have the 1.9840/50 support zone, followed by the already tested level of 1.9750 and February 27^th high of 1.9670, all the mentioned levels above stand out as clear defined support levels which could act as possible target for bears and slow down the potential south move when price gets there.




Resistance Levels

• 2.0200 – Round number
• 2.0133 – April 18^th High

Support Levels

• 1.9914 – January 23^rd High
• 1.9840/50 – May 4^th / December 1^st 2006 High
• 1.9670 – February 27^th High