EUR/USD Technical View
Euro traded between 1.4600 and 1.4700 on Thursday but it closed the day lower than it opened, and right now the pair is slipping lower, below the 1.4600 support level and also under the trendline we have marked on our charts. Failing to reach a new high has put pressure on the pair and this is starting to show, the markets are showing signs of shifting towards the USD as a safe currency. Looking at support and resistance level we can see that once below 1.4600, the closest important area is 1.4500/1.4520 here the pair should find support and if the move lower has enough energy and we break this support area the next one is at 1.4375/1.4400 which is also where we have a second up sloping trendline. Conversely the pair might change it’s direction and start to head north, although at the moment that has not many chances of happening we can keep an eye on the 1.4700/1.4735 area as the main resistance that needs to be broken in order to see the pair make a higher high.
GbpUsd Technical View
Cable continued to loose groung against the US dollar on Thursday, as we mentioned in our previous commentary the pair broke the 2.0500 support line and put in another down day of over 200 points. Next support and bearish target is September 12th high at 2.0365, but until 2.0250 the pair has a lot of former highs and lows to break established in the October trading range. A retest of the 2.0500 could happen before we see a bigger drop considering the pair is in an oversold area on the daily charts and the bullish traders out there might look at every opportunity as an add in chance. The bearish momentum has picked up speed and a return to the long trend seems unlikely while the pair is trading below 2.0500.