EUR/USD Technical View

Euro recovered in the last week of 2007 and got above 1.4700 where the pair traded in the past few days, and formed a hammer candle on the weekly chart(as seen below). While we are trading below Friday’s high at 1.4830 we maintain our bearish bias on this pair and expect a move lower aiming at first for the 1.4600 area as an intermediary target before the 1.4300 December low. EurUsd is trading in an overbought area close to a strong resistance level on the daily chart and this is one of the facts that makes us think the pair is going to go lower. Conversely a move above Friday’s high will certainly be a blow to shorts and perhaps shift focus towards the psychological target of 1.5000, a target we failed to reach in November.
Resistance Levels

• 1.5000– round number
• 1.4966- Nov 23rd high
• 1.4735 –Nov 9th High

Support Levels

• 1.4500- round number
• 1.4300 – Sept 30th High
• 1.4000 – Round number
• 1.3850 – July 24th High

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Thursday’s Jan 4th midday analysis -13.00 GMT

Euro traded just above the 1.4700 level for most of today’s session waiting for the NFP release, the par fas traded calmly getting closer and closer to the support level but not managing to break below as the upcoming are important and could change the mid term perspective.

GbpUsd failed to perform as expected, although it briefly got below 1.9700 the 9.30 GMT UK news helped pushed the pair for a new retest of the 1.9800 resistance and now we are trading roughly at the 50. Fib line of today’s 125 pont move; also the upcoming NFP release will have an impact on the pair and will determine the direction for the remainder of the session.

EUR/USD Technical View

Euro is trading at the exact same spot where it was when we issued out our previous daily commentary, only today the pair is moving slightly downwards after touching the resistance line offered by the upsloping trendline we have marked on our charts, as seen below. The situation hasn’t changed that much, we are still trading in an overbought area on the daily charts and we are below a major resistance area, if the pair doesn’t manage to break this resistance and push higher we maintain our bearish bias and expect a move towards the December low at 1.4300.

Resistance Levels

• 1.5000– round number
• 1.4966- Nov 23rd high
• 1.4735 –Nov 9th High

Support Levels

• 1.4500- round number
• 1.4300 – Sept 30th High
• 1.4000 – Round number
• 1.3850 – July 24th High

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Thursday’s Jan 3rd midday analysis -13.00 GMT

EurUsd found intraday support at the 1.4700 round number and pushed higher making a new weekly high but failling to break decisively above the resistance provided by the upsloping trendline we have mentioned on our previous commentary.

GbpUsd moved lower in the Uk session breaking below 1.9800 and finding support at a trendline connecting yesterday’s lows; after that the pair witnessed a short retrace towards the middle of its 130 point range it covered today. A retest of the 1.9800 area, now turned into resistance, is likely to happen later on in the US session.

EUR/USD Technical View

Euro has started the new year trading very close to the 1.4735 resistance and is starting to give us a bearish sentiment, as we can see clearly on the chart below the daily charts have entered into an overbought area while trading just under an important resistance zone. While below 1.4735 and the upsloping trendline we have marked on our charts it is safe to say that bears have a bigger chance of taking over in the next few days. Getting back to regular trading after the holidays is always tricky, the market has to find it’s rhythm again and fall back into the everyday path.
Resistance Levels

• 1.5000– round number
• 1.4966- Nov 23rd high
• 1.4735 –Nov 9th High

Support Levels

• 1.4500- round number
• 1.4300 – Sept 30th High
• 1.4000 – Round number
• 1.3850 – July 24th High

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Thursday’s Dec 20th midday analysis -13.00 GMT

EurUsd failling to print a new low in yesterday’s US session gave bulls enough reason to push the pair higher and so it touched the 1.4400 intraday resistance and after that we saw a small retracement towards the 50.0 Fibonacci of yesterday’s trading renage. We may a second attempt at the 1.4400 level in today’s remaining trading hours.

GbpUsd traded inside Thursday’s range, and after it didn’t manage to break a new low we are trading just under the 1.9900 resistance and chances are the pair will head higher in the US session.

EUR/USD Technical View

Euro failed to reach the 1.4300 round number on Thursday and stopped only pips away; after that the pair bounced back and in today’s Asian session we saw it make an intraday high at 1.4400. Unless something unexpected happens we think we are going to trade around the current levels at least until the US session when we could see a stronger move forming. Looking for support and resistance level we have to take into consideration the current weeks high and low at 1.4450 and 1.4310 respectively as the closest levels that need to be broken for the pair to move either way.
Resistance Levels

• 1.5000– round number
• 1.4966- Nov 23rd high
• 1.4735 –Nov 9th High

Support Levels

• 1.4500- round number
• 1.4300 – Sept 30th High
• 1.4000 – Round number
• 1.3850 – July 24th High

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Thursday’s Dec 20th midday analysis -13.00 GMT

EurUsd continued yesterday’s move and after it retraced a bit late in the US session it started to move down again and printed a new low just pips above 1.4300 support level. 1.4300 should give the true strength of this bearish move as it s a tough support level, a break here will certainly be a blow to bullish hopes.

GbpUsd retraced towards the 2.000 resistance but failed to reach it and then the pair sinked lower even breaking the 1.9900 support. Yesterday’s 270 points move has a projecte Fibonacci expansion target of 1.9760, we remeber this level from a few months ago when the pair was heading higher.

EUR/USD Technical View

Euro broke lower on Wednesday by just a few pips but the overall price action of the day has given us a bearish bias and we expect the pair to touch is not go under the 1.4300 later on today. Lower down we have the 23.6 Fibonacci line at 1.4242 of the October-November move north which is very close to an ascending trendline we have marked on our chart that is connecting former yearly highs and has turned from a resistance line into a support one. Conversely a turnaround in price will have to break above 1.4450 which at the moment is the closest intermediary resistance before one could expect a a move above 1.4500 area.
Resistance Levels

• 1.5000– round number
• 1.4966- Nov 23rd high
• 1.4735 –Nov 9th High

Support Levels

• 1.4500- round number
• 1.4300 – Sept 30th High
• 1.4000 – Round number
• 1.3850 – July 24th High

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Wednesday’s Dec 19th midday analysis -13.00 GMT

EurUsd has entered into the 3rd consecutive tight range day, it covered today only 50 pips with the mention that it broke under the trendline connecting monday and tuesday’s lows and has already retested the trendline now turned into resistance and one could expect a move lower later on in the US session.

GbpUsd broke lower today when the BOE minutes got out, and before that the pair surged higher and tested the 2.0180 intraday resistance. Today’s low at 2.0030 is just pips away from the Fibonacci Expansion target we mentioned a while back and we are looking to get closer to the 2.00 area in the following hours.