EUR/USD Technical View
Euro printed a green bar on the daily charts yesterday, and although it pushed above 1.4700 to a make a daily high at 1.4726 it lacked the energy to stay there and it retraced close to the current trading level of 1.4680. The area above 1.4700 proves to be tough resistance as we’ve already mentioned in our previous commentary but the pair still maintains, for the time being, its bullish bias. Again we have to reiterate that 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, yesterday the pair was just a few pips away from making a new high. On the other side, if the 1.4700/1.4735 area proves to tough it might push the pair lower and first support is around the 1.4600 and the up sloping trendline.
GbpUsd Technical View
Cable made a spectacular day on Wednesday, after touching the 50.0 Fib line of the 2.1140/2.0515 down move the pair fell sharply for more than 300 points and it only stopped at the 2.0500 support zone and previous weeks low. For a continuation lower the pair will have to break below 2.0500 and the trendline we have marked on our charts, if that happens we expect a move towards 2.0365 and a retest of the 2.0500 area before moving any lower. On the other hand looking at the daily charts we can see that GbpUsd is slowly entering into an overbought area and considering we are trading close to a support area the pair might once again bounce up and trade towards the weekly open.