EUR/USD Technical View

Euro started the week slowly, trading around the 1.4200 level until Wednesday, and pushed higher on Thursday to touch the former high at 1.4300. Friday’s price action managed to print a new high at 1.4320 but the pair closed the week just a few point below the 1.4300 round number. The pair confirmed our expectations of moving higher and it still has some potential to move even further north, like we already mentioned the 1.4500 level is seen by many as a significant bullish target. In the following days we should keep an eye on the current YTD high as the pair might find some resistance at that level, but the overall bias is still bullish and if there are no big surprises we should see a higher high this week. A failure to make new highs will force us to look for support levels, and we can clearly see on the weekly and daily charts the up-sloping trendline where the price will most likely find some strong support.

Resistance Levels

• 1.4300 YTD High
• 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

Same as the Euro, cable traded around an important resistance level for the first days of the week, but on Thursday it broke clearly above the 2.0365 line and it started to confirm the bullish flag we have spotted on the daily charts. The pair closed the week above the 2.0500 round number and seems to have enough energy to push higher; the first and most important bullish target is of course the current YTD high at 2.0650. The bullish trend looks to have resumed but just to be on the safe side its worth being aware of some support areas; first one is the 2.0365 level followed closely by the 2.0310-2.0325 area which proved to be a very important one in the last couple of weeks. Without any major surprises in the market we should see the pair closing in on the yearly high and who knows perhaps even form a new one.

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