EUR/USD Technical View

Euro started the week trading around 1.4400 and it continued to do so until Wednesday when the bullish sentiment prevailed and the pair pushed higher having also fundamental support after the FOMC decided to cut US interest rates by 0.25%. Thursday was an interesting day as the US dollar recovered some of the lost ground but it failed to hold on to those gains and EurUsd made a new record high on Friday afternoon. Having reached the 1.4500 target, the pair seems to aim higher first at 1.4600 and if the current situation doesn’t change traders will start looking at 1.5000 as the next big target level. The bullish momentum has pushed the pair higher and higher but one has to be on the lookout for a possible retracement, looking for support areas we can find former resistance now turned into support, closest is of course the 1.4500 round number, followed by the 1.4400 area.

Resistance Levels

• 1.5000– round number
• 1.4526 –YTD High
• 1.4300- round number

Support Levels

• 1.4000 – Round number
• 1.3930 – September 13th high
• 1.3850 – July 24th High

GbpUsd Technical View

Cable pushed higher right from the Sunday open, and printed green bars 4 out of 5 days this week, the exception being made on Thursday when we witnessed what appears to be some profit taking and repositioning in the market. The pair broke the yearly high on Tuesday and has never looked back, it is getting closer and closer to the 2.1000 round number. On the daily charts cable made higher lows and higher highs for 8 consecutive days after it broke out and retested that bullish flag pattern on October 23rd; looking at that the bullish momentum is very strong and before even thinking of a possible move south one should wait for some clear signs that this momentum is slowing down. Above the current highs the next target and resistance level is the 2.0900 round number before the already mentioned 2.1000 level.

Resistance Levels

• 2.0893 –Nov 2nd High
• 2.0650 – July 24th High

Support Levels

• 2.0460 – August 3rd High
• 2.0365 – September 12th High
• 2.0200 – Round number