EUR/USD

Euro formed an outside bar yesterday, taking out both of Tuesdays high and low, it didn’t manage to reach the 1.3630 level on the high side but it got under the 1.3523 support only to stop at the 1.3500 round number. Once again we are trading around the 1.3523/1.3550 zone and we have to wait for price to break through either side in order to have a much clearer view of things to follow. On the down side we now have yesterdays low of 1.3500 as closest support followed by May 10^th/11^th lows of 1.3459, if these two levels fail to hold the pair next strong support is December 3^rd high of 1.3365. If the current levels the price is at hold and we get another push north first targets would be 1.3610 and May 7^th high of 1.3630, if those are cleared we can expect another try at the 1.3668/80 YTD highs.


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
• 1.3459 – May 10^th/11th Lows
• 1.3365 – December 3^rd High
• 1.3300 – January 7^th High
• 1.3260 – February 27^th High

GBPUSD Analysis


Cable put in a very similar day as the Euro, much due to both of the Europeans weakness against the US dollar, we are trading between the 1.9750 support and the 1.9840/50 resistance area and at the moment it looks like it could go either way. If the pair breaks bellow the 1.9750 and the upper trendline we can see on the chart, it will open up February’s 27^th high of 1.9670 as a possible target followed by 1.9550 the 0.50 Fib line of the range made in the beginning months of the year. Conversely if the 1.9750 proves to be, once again, a strong support zone we can expect some sort of bounce back north in cable, if that is the case getting above the 1.9840/50 resistance should open up the 2.00 level, followed by the 2.0060/70 resistance area before the 2.0133 YTD high.



Resistance Levels

• 2.0200 – Round number
• 2.0133 – April 18^th High
• 1.9840/50 – May 4^th / December 1^st 2006 High

Support Levels

• 1.9750/60 – retested level, May 11^th low
• 1.9670 – February 27^th High
• 1.9550 - .50 Fib