EUR/USD

Euro broke the 1.3590 level we mentioned yesterday and we had an above average trading day yesterday with price getting as low as 1.3510. If the pair manages to keep what appears to be a down momentum we can see lower levels in the coming days but if we look at the daily and 4hours charts we can see that it has to clear some important support zones in order to get any lower. First it has to get bellow the 1.3523/50, yesterday it got a little bit lower but it lacked the strength to close near 1.3500; so if EurUsd gets bellow current levels we can see March’s 2005 high of 1.3483 becoming a plausible target, after that we have the 1.3410 high made on March 21^st and December 3^rd 1.3365 as support zones which could slow the potential down move or even send the pair higher up. Not clearing the current levels on a down move might signal a potential reversal for another push towards and above 1.3668, before the pair gets there it has May 7^th high of 1.3630 as intermediary resistance.


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 continued its small trading range series of days, yesterday it covered fewer than 90 pips. Trading bellow 1.9900 the pair is approaching the 1.9840/50 resistance area and we should pay close attention to price action at those levels, if the US dollar gathers some energy and pushes the pair under the mentioned levels we have to look at future possible targets and resistance points, the levels that stand out are, 1.9750 a level previously tested former resistance now support, followed by February 27^th high of 1.9670 and even lower we have the 1.9590-1.9600 area. If on the other hand the pair doesn’t break under the 1.9823/50 support a bounce back up might be in the cards, with that being the case we have Mondays may 7^th high of 1.9975 as intermediary resistance just under the 2.00 round number, higher up is the 2.0060/70 area and as final target on our charts is the YTD high of 2.0133.



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