EUR/USD Technical View
Euro followed the other majors and lost ground against the the US dollar on Monday, the pair broke below the support trendline and the 1.4600 level only to find support a few points above 1.4500. After yesterday’s big move down, more than 140 points, we are seeing the pair bounce back up, it has already recovered most of the lost ground and is trading again above 1.4600. The volatility has clearly increased in the last few days and that has affected almost every pair, having changed the way price action develops usually, EurUsd mid term trend is still bullish although we have seen a repositioning in the market mostly based on fundamental reasons. The main target for longs is now the YTD high at 1.4735 which has so far proven to be a good resistance level as well. On the other hand a failure to resume the up trend will push the pair lower perhaps below the 1.4500 support area.
GbpUsd Technical View
Cable continued Friday’s move with another spectacular day on Monday, covering more than 300 points and breaking through support levels until it reached the 2.0520 area which is very close to the starting point of the October push north. Same as the Euro, GbpUsd has bounced back in the Asian session and is now trading around the 2.0650 resistance area. The most was not triggered by any technical view, and was mostly based on the UK banking rumors, so its hard to say if it has come to a stop or not. Looking at the daily chart we can see the 2.0500 support area just below today’s low and if the pair starts dropping again we will enter into a former consolidation area filled with formed highs and lows that can provide support and resistance levels and price targets. On the north side the first targets are the 50.0 and 61.8 Fib Retracement levels of the last fall, around 2.0825 and 2.0750 respectively.