FX Instructor

EUR/USD Technical View
The week started and EurUsd traded inside a very small range between the 1.3460 support line and the 1.3500 round number, most traders out there are still waiting to see which way to go and that depends on the future evolution of interest rates in the US. AS far as technical levels go,while trading above 1.3460 we should pay attention to a possible move up, the most significant bullish target and resistance level is the 1.3600 area which has already proven to be key zone. On the other hand a move below 1.3460 will get us very close to the 1.3365 low from last Thursday and that should shift focus on the June 13th low at 1.3260 which at the moment is the main support level we see on the current setup. Trading in the following days should be, even more so than usually, very careful as the markets still seem to wait and react on fundamentals.

Resistance Levels
* 1.3850 – July 24th High
* 1.3750 – round number
* 1.3680 – April 27th High
* 1.3550 – June 5th High

Support Levels
* 1.3459 – May 10th/11th Low
* 1.3365 – December 3rd High
* 1.3260 – June 13th Low


GbpUsd Technical View
Cable started the week with a move north from 1.9800 to 1.9900, but the 1.9900 resistance proved to be strong and after a few failed attempts to go over it, price started to slip and so far today we are going to retest the 1.9800. Looking at the daily chart below we can see that a break below the 1.9750/60 area will probably push the pair even lower and we will see a move to Friday's low at 1.9670, with that being our main support level followed only by the 1.9550 area which has been established as support earlier in the year. Conversely a failure to get below 1.9750/60 or even a bounce from the 1.9800 will bring, once again, the 1.9900 into attention and with that also the 1.9950, both as intermediary resistance levels before the 2.0000.

Resistance Levels
* 2.0650 – July 24th High
* 2.0460 – August 3rd High
* 2.0200 – Round number
* 2.0000 – Round number

Support Levels
* 1.9670 – May 21st low
* 1.9550 – previously tested support