EUR/USD Technical View

Euro started the past week rather slowly, testing the 1.3460 support line a few times while it formed doji bars on the daily chart on Monday and Tuesday, after another test early Wednesday morning the pair shot up for the rest of the week managing to build some upside momentum and it got to the 1.3680 resistance level on Friday afternoon. Looking at the weekly chart below we can see that an inside bar has formed, a move above the 1.3680 area will reinforce the bulls in the market and confirm that the uptrend has regain the strength necessary to perhaps push the pair to new highs. Above Friday’s high we have the 1.3750 area as intermediary resistance before the 1.3840/50 YTD highs which at the moment represents the most important bullish target and resistance level we can spot on the charts. Regarding the short side we have to be look at the 1.3600 round number, there is a fair chance that EurUsd will retrace towards the 1.3600 before making a push higher, but there is still the possibility that the move towards the 1.3600 will be more than a retracement move and the 1.3600 will break and than we have to be aware of support levels, 1.3550 established on June 5th is the closest one followed lower down by the already tested 1.3460 and even lower by the 1.3365.

Resistance Levels

• 1.3850 – July 24th High
• 1.3750 – round number
• 1.3680 – April 27th High

Support Levels

• 1.3550 – June 5th High
• 1.3459 – May 10th/11th Low

• 1.3365 – December 3rd High
• 1.3260 – June 13th Low

GbpUsd Technical View

Cable followed the same scenario as the Euro, started the week a bit slow printed a small green candle on the daily charts on Monday only to give all the points back on Tuesday when we saw the pair moving lower than the support lines at 1.9750/60 in intraday trading; in the US session on Tuesday the pair started to move higher and the move continued for the rest of the week, Friday’s high was at the 2.0133 resistance which used to be the yearly high for a couple of months from April to June. The momentum is clearly on the upside and with the current situation we have to be on the lookout for future resistance levels, closest by is the 2.0200 round number which has already proven to be an important one, above that we only have the 2.0300 and the 2.0400 round numbers before the 2.0460 established on August 3rd. In the following days we have to see how the price action develops within the 2.0133/2.0200 range as this could be a good place for either establishing a base for future moves up or a good starting point for the bears to open new positions and perhaps force the pair lower. Closest resistance is of course the 2.0000 level which is going to be important for both bulls and bears.

Resistance Levels

• 2.0650 – July 24th High
• 2.0460 – August 3rd High

• 2.0200 – Round number
• 2.0000 – Round number

Support Levels

• 1.9670 – May 21st low
• 1.9550 – previously tested support