EUR/USD Technical View

EurUsd failed to print a new high on the weekly chart, it stopped just under the November 23rd high at 1.4966 at the resistance offered by the trendline that connects August and September 2007 swing lows. Breaking the weekly movement on a daily basis we see that Monday the pair pushed higher and although it made a new high on Tuesday after that we had a straight down move supported by a speech from an ECB banker and the fact the EurUsd was trading in an overbought area. The weekly low was made on Thursday at 1.4587 and after that we saw the bearish momentum slowing down and the pair closed just above 1.4600. We maintain our bearish bias for the following days with the mention that Monday is a holiday in the US and trading might be slow; perhaps the most important bearish target is December 20th low at 1.4300 which is also an important support level a place where bullish traders will want to use as a base for a repeat of December’s movement.
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

(more…)

EUR/USD Technical View

Euro printed a new high on Monday at 1.4915 just at the the up sloping trendline connecting August and September 2007 lows. The pair got in touching distance of the 1.4966 high and it still got a chance to get there in the next few days even if it doesn’t break decisively above the mentioned trendline. Forming a toppish pattern around the 2007 high or close to the 1.5000 psychological target will give bears a new opportunity to open shorts as we see the beginning of a bearish divergence on the higher timeframes. We didn’t expect the pair to move this high but after making a new high and showing some bullish momentum we are starting to look at what will happen if and when we will reach the 1.5000 level, like we said it’ll be a good place to short but there are already numerous voices in the markets that say it will go even higher.
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

(more…)

Tuesday’s Jan 8th midday analysis -13.00 GMT

Euro traded just below the 1.4700 level for the better part of today’s session in expectation of the ECB rate announcement. Unless we see a major surprise there, the pair is expected to continue its downside move towards the 1.4600 level and lower.

GbpUsd retraced to the 50 Fibonacci line of the 1.9760/1.9560 down move and after the BOe announced that it’s keeping interest rates at 5.50% the pair spiked up but we are seeing it resuming the downtrend; first target is this mornings low at 1.9535 before breaking below the 1.9500 round number.

EUR/USD Technical View

Euro formed an inside bar on Tuesday and until now, today’s price action has been contained inside yesterday’s as the pair covered only 40 points from low to high. The intermediary resistance at 1.4735 has so far proven to be a strong one and this is in line with our previous comments, that while we’re trading below 1.4750 we should look for possible short targets; moving under the 1.4700 round number should give us a more clearer bearish signal at least for short term. Conversely a push in the 1.4750-1.4800 area will get us closer to the trendline we have marked on our daily chart below and will force us to be more cautious about opening new shorts.

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

(more…)