EUR/USD Technical View

Euro began the week slowly, almost like usual one might say, and it started printing new record highs on a daily basis for the rest of the week. Although the daily charts look a bit overbought the pair pushed higher through the resistance levels and made a new YTD high at 1.4280, so far the bullish trend seems very strong and it doesn’t appear to slow down, looking for future possible resistance levels we have only the round number that might have a psychological impact over the markets, first one is the 1.4300 followed by 1.4400. On the south side we should look at the 1.4200 as the first support area and if we have a move lower than there is past weeks low at 1.4060 as the next significant support zone. Markets overall bias is bullish and only an unexpected event seems at this point that can change that.

Resistance Levels

• 1.4200- round number

Support Levels

• 1.3930 – September 13th high
• 1.3850 – July 24th High
• 1.3680 – April 27th High
• 1.3550 – June 5th High

GbpUsd Technical View

Cable had an interesting week, it moved lower in the first 3 days not managing to hold above the 2.0200 resistance, after it formed an inside bar on the daily charts on Wednesday it broke through higher on Thursday and after a retest on Friday morning the pair pushed higher and managed to cover in excess of 250 points by the end of the session. Currently we are trading just around the 2.0460 resistance established by a double top at the beginning of August ; if the pair will keep its momentum and break above this resistance area we might as well see it following in Euros footprints and make a new record YTD high. Now that it broke our of the range we’ve had for the most part of September cable certainly looks bullish enough to allow us to think that it can move higher, next resistance is of course the YTD high at 2.0650 and above that there are no more clear cut resistance areas. As far a possible retracement after such a strong move, we gave to look at the 2.0365 level now turned into support as the first bearish target and possible base for another leg up.

Resistance Levels

• 2.0650 – July 24th High
• 2.0460 – August 3rd High
• 2.0365 – September 12th High

Support Levels

• 2.0200 – Round number
• 2.0000 – Round number

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

 

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