EUR/USD Technical View
Euro recovered nicely from Monday’s sharp fall, it bounced from just above the 1.4500 level and is now trading around 1.4650 area. Although the pair still looks overbought on the daily charts, as seen below, the bullish momentum has return and confidence in longs is building up again. Looking for possible targets and resistance levels we have our sights set on the current YTD high at 1.4735, if the pair crosses decisively above 1.4700 we should reach that target by the end of the week. Conversely a failure to get and stay above 1.4700 might add pressure on the pair and encourage bears to start pushing the pair lower, in that case once again we have to look at the up sloping trendline to offer some support and at this weeks low at 1.4518.
GbpUsd Technical View
GbpUsd has also recovered more than 200 points yesterday getting above the 61.8 Fib retracement line of the 2.1140/2.0515 down move. While trading below the previous week’s range its hard to say that the pair has resumed the up trend but for short term we are long biased and expect a move higher at least towards the 32.8 Fib line at 2.0900. Reaching the current YTD high at 2.1140 will take some time as it is a known fact that price drop faster than they rise. If the markets settle down a little bit we should see the pair surge higher and trade above 2.0500 which at the present is the closest and most important support level on the charts.