Technicals

EURUSD: The inability of the pairto break and hold above its Monday high at 1.5569 saw it tumble lower to close Tuesday session at 1.5470.Its was seen weakening further in early trading today with the 1.5360/41 area, its May 0208/Mar 2408 lows/.382 Ret (1.4438-1.6018 rally) coming in as the first downside objective ahead of its May 0808 low at 1.5283.Decisively penetrating these support levels will trigger more weakness towards the 1.5164 level, its .50 Ret (1.4309-1.6018 high) and then its .618 Ret at 1.5048.This view remains in alignment with its short term decline off the 1.6018 high as well as its weekly momentum indicator which are negative and pointing lower. Upside objectives are seen at its May 0608 high at 1.5593 with a turn above there extending upside gains towards the 1.5710 level, its April 1808 low and possibly higher. On the whole, current price action suggests the pairs fall off the 1.6018 high still has some distances to cover on the downside in the short term.

Support Comments

1.5360/41 .382 Fib Ret/Mar 2408 low/May 0208

1.5164 .50 Ret (1.4309-1.6018 high)

1.5048 .618 Ret

Resistance Comments

1.5593 May 0608 high

1.5626/00 April 0708 low/Psycho Level

1.5710 April 1808 low

1.5895/I 5912 Mar 3108 high/2008 Peak

GBPUSD: GBP Approaches The 1.9360/35 Support Zone

GBPUSD: Having closed lower Tuesday with a follow-through to the downside in early morning seen today, GBP is now approaching its key support standing at the 1.9360/35 area, marking its 2008 lows. Breaking and holding below there will trigger its medium term decline off the 2.1160 high towards the 1.9180 level, its Mar 0407 low ahead of its Weekly 200 Ema at 1.8902.The pairs weekly studies are negative suggesting additional lower prices. On the upside, the 1.9598 level, its April 1508 low comes in as the immediate resistance followed by the 1.9727/19 area, its Mar 0508/April 0108 lows and then the 1.9963/ 2.0026 levels, its Feb 2708/April 21 & 2808 highs. Other resistance resides at the 2.0191 level, its Mar 2708 high and its Mar 1408 high at 2.0396.All in all, GBP is now poised to take out its strong support at the 1.9360/35 zone and activate its medium term downtrend.

Support Comments

1.9360/35 2008 lows.

1.9180 Mar 0407 low

1.8902 Weekly 200 Ema

Resistance Comments

1.9598 April 1508 low

1.9674/53 April 2508 low/Aug 1707 high

1.9727/19 Mar 0508/April 0108 lows

1.9963/2.0026 Feb 2708/April 21 & 2808 highs