EUR/USD Technical View

Euro put in a 7th consecutive green bar on the weekly charts, as seen below, but this week’s bar doesn’t paint the whole story. Monday was an uneventful day, the pair formed a doji and closed slightly lower than it opened, on Tuesday we saw the big move of the week more than 200 points and a break above the 1.4800 round number, after that EurUsd started to slow down and Wednesday and Thursday the price didn’t move that much with many traders taking a day of due to the holiday in the US. Friday was a spectacular day with price surging higher in the Asian session coming close to the 1.5000 psychological target but failing to reach it, looking at the weekly chart below we can see the pair achieved it’s projected Fibonacci Expansion target at 1.4940 area and with this in mind we expect to see some consolidation in the following days, perhaps even a retracement towards the 1.4700/1.4735 support area. Staying above 1.4800 will certainly maintain the pair in line with the bullish trend and a push towards Friday’s high at 1.4966 will get us closer to the 1.5000 man target.

Resistance Levels

  • 1.5000– round number
  • 1.4966- Nov 23rd high
  • 1.4735 -Nov 9th High
  • Support Levels

  • 1.4500- round number
  • 1.4300 - Sept 30th High
  • 1.4000 - Round number
  • 1.3850 - July 24th High
  • GbpUsd Technical View

    GbpUsd traded around the 2.0500 area on Monday before it pushed higher an touched the 2.0650 resistance level on Tuesday, for the rest of the week the pair traded below this resistance although it tried more than once to break above it; Friday’s brought us the biggest move with the pair getting close to another resistance level at 2.0775 but at the end of the day it closed just a few pips above 2.0600 and thus reinforced the 2.0650 resistance area. Cable retraced to the 50.0 Fib line of the 2.1144/2.0348 down move and while trading below the 2.0650 resistance we expect a new test of the 2.0500 area and of the up sloping trendline we have marked on our charts, a decisive break of these two support areas will signal a change in trend and bring to our attention the possibility of a down mow towards the 2.0000 level. On the other side getting above 2.0650 is the short term bullish objective and once that is achieved the focus will shift on the pairs next resistance at 2.0700, above that we have the 2.0775 area which is a projected bullish target for the last few days

    Resistance Levels

  • 2.1148 - Nov 9th High
  • 2.1065 - Nov 7th High
  • 2.0650 - July 24th High
  • Support Levels

  • 2.0460 - August 3rd High
  • 2.0365 - September 12th High
  • 2.0200 - Round number