Tuesday Nov 20th midday analysis -13.30 GMT

EurUsd moved higher from that trading range we’ve seen for the last few days, and once it broke the 1.4700/1.4735 resistance area it headed straight for the 1.4800 level. The projected bullish target on this move is at the 161.8 Fib line around the 1.4900 level; on the south side closest support is the confluence of former resistance area 1.4700/1.4735 which is also close to the 61.8 and 50.0 Fib retracement of the 1.4635-1.4800 leg up.

GbpUsd followed in Euro’s footsteps and gained more than 200 points until it found resistance at the 2.0650 level, since than it retraced to the 61.8 Fib line just under the 2.0600 round number and it’s once again heading higher, we have a calculated target at 2.0796.

EUR/USD Technical View

Euro recovered nicely from Monday’s sharp fall, it bounced from just above the 1.4500 level and is now trading around 1.4650 area. Although the pair still looks overbought on the daily charts, as seen below, the bullish momentum has return and confidence in longs is building up again. Looking for possible targets and resistance levels we have our sights set on the current YTD high at 1.4735, if the pair crosses decisively above 1.4700 we should reach that target by the end of the week. Conversely a failure to get and stay above 1.4700 might add pressure on the pair and encourage bears to start pushing the pair lower, in that case once again we have to look at the up sloping trendline to offer some support and at this weeks low at 1.4518.

Resistance Levels

• 1.5000– round number
• 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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