EUR/USD Technical View

EurUsd is trading close to the same levels it was when our previous commentary was written, but it has certainly moved a lot in the mean time; finding support at the 1.4700/1.4735 area on wednesday gave the pair an excellent reason to shoot back up above 1.4800 forming a hammer like candle on the daily charts closing the day a few points above the open, though the downside pressure was to big and the US dollar started to recover and we witnessed the pair falling back again towards the above mentioned support area. We are getting closer to the up sloping trendline marked on our chart which should offer additional support and can be a good base for yet another north recovery.

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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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.