EUR/USD Technical View

The week started with a gap on Sunday night but due to mostly profit taking and a few rumors we saw a sharp fall on Monday , a fall of more than 200 points on the Euro; the pair found support at an ascending trendline and after that, the rest of the week it pushed higher and on Friday we broke through the 1.4348 high and got just a few pips away from the 1.4400 round number. Looking at the daily and weekly charts the upside momentum is still strong and without any big surprises in the following week the pair should be on track for reaching the 1.4500 bullish target, we have to mention that we have some important fundamental news coming out that might have a strong effect on the direction. If a retracement is going to happen we need to observe price action around the 1.4300 round number, the closest support area, and lower down around the ascending trendline we mentioned, an already proven support level.

Resistance Levels

• 1.4350 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

Cable formed an outside bar on the weekly charts, and that was caused by Monday’s sharp drop of more than 250 points from a previous monthly high. Starting with the last hours of Monday’s trading session the pair began recovering and although on Wednesday it formed a down bar overall the pair managed to close the week pretty much at the same levels where it opened with the mention that it broke a new high at 2.0570. Although the upside momentum has slowed down the pair still looks bullish at this time, with that in mind we need to look at 2.0570 as the next resistance level to breach before the YTD high at 2.0650. Conversely if the US dollar regains some of its lost strength we could see a retracement happening and pushing the pair lower towards the 2.0460 high established on August 3rd and even lower aiming for the 2.0330 support area, where the pair found a strong base this month.

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