EUR/USD

Euro slipped under 1.3500 in yesterdays trading session but only got as low as 1.3475, 15 points above the support levels established on May 10^th at 1.3459. Getting under the 1.3459 support might trigger more downside pressure on the pair which will open up December 3^rd high of 1.3364 as a target and once there we will analyze the continuation potential. If on the other hand euro doesn’t manage to get bellow the current trading levels, and if we consider the slightly oversold conditions on the 4hr and daily charts, we will have to pay attention to future resistance as the pair might reverse the move from the last couple of days. The closest resistance is the 1.3523/50 zone, once above it May 16^th high of 1.3610 and May 7^th high of 1.3630 are the intermediary resistance zones until the 1.3668/80 YTD high.


Resistance Levels

• 1.4532 – March 2005 High
• 1.3668 – December 2004 High
• 1.3630 – May 7^th High
• 1.3523 – April 16^th Low

Support Levels

• 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 touched the upper trendline yesterday but so far it has bounced from it in today Asian session, so far we are still trading in a consolidation zone between several levels of support and resistance although the oversold conditions on the higher timeframes (4 hours and daily) and the bounce from the trendline might suggest us that this might be the point of reversal of the down move. If the pair is to head higher from here we have to break into and then above the 1.9840/70 resistance area and head towards the 2.00 level before making a potential push on the YTD high set at 2.0133. Conversely a failure to hold at current levels will open up February’s 27^th high of 1.9670 as a possible target followed by 1.9550 support.



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