EurUsd put in another interesting week, as far as movements and volatility are concerned, it opened moving lower due to the US holiday and after an above average move on Monday the pair continued on Tuesday until the FED interest rate announcement that pushed EurUsd much higher above 1.4600, the weeks high was established on Thursday at 1.4778, the close on Friday found the pair trading just 70 points of the Sunday night open, at 1.4670. After failing to reach the 1.4300 support area we can see a higher low being formed and slowly we can see the pair has traded inside a 600 points range for the past few months and with the current market bias we can expect to test once again the 1.4900 resistance zone, and, if the pair has enough strength perhaps make a push toward the 1.5000 psychological target. Conversely on the south side the main resistance is now the area just above 1.4300 uo to 1.4360, a break of this will give bulls an important blow and bearish traders will have a great opportunity to open new positions.

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 moved below 1.9550 support on Monday and the market was getting ready for another bearish run but the interest rate news coming out from the US reversed that and than some, after printing a new low at 1.9340 early on Tuesday morning the pair closed the day above 1.9600 and after a mellow Wednesday it shot higher on Thursday and Friday to close above 1.9800 after reaching the down sloping trendline we have marked on our chart connecting the 2.1137 record high from November and other two swing highs. Reaching such an important resistance line will obviously have a significant impact on how the pair will develop, breaking above will be a clear bullish signal even though we can expect a retest of the trendline to establish it as support; a failure to push through this resistance line will once again bring the pair close to the 1.9670 level and inside the January range.

Resistance Levels

• 2.1148 – Nov 9th High
• 2.1065 – Nov 7th High
• 2.0650 – July 24th High

• 2.0365 – September 12th High

Support Levels

• 2.0000 – Round number
• 1.9800 – Round Number
• 1.9670 – August 17th Low
• 1.9180

Euro found an intraday support base at the 1.4600 level and moved toward yesterday’s at 1.4685; moving higher will get the pair closer to the 1.4700 resistance level and if that gets breached we could see the 1.4825 bullish target touched. This scenario will of course be denied if the resistance levels hold and the pair forms a short term double top that will give bears a new opportunity to short.

GbpUsd tested the 1.9500 support and slowly started to move higher and it has already pipped a new weekly high, if the pair has enough strength to hold above 1.9600 we could see the 1.9670 resistance being touched later in the afternoon.

EurUsd is trading at the same level it was when we wrote our previous daily commentary, the pair moved lower in yesterday’s afternoon trading hours but then retraced back up above 1.4600 after finding support at the 1.4500 level. The markets are still undecided after the events we’ve witnessed this week and apparently many are still expecting the FED to cut interest rates again, and until that situation gets some clarification trading will be difficult, the battle between bulls and bears will keep the pair trading close to the current levels.
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 moved below 1.9500 support level in Wednesday’s afternoon trading but failed to stay down there and jumped back up to retest the 1.9550 zone, where we are trading at the moment this commentary is written. We can see marked on the chart below a down sloping trendline that should offer additional resistance and help keep the pair trading below 1.9600; breaking above this trendline would turn n from resistance into support and will give bullish traders a short term opportunity to push the pair higher perhaps toward the 1.9670 level. After Tuesday’s sharp move the pair has entered into a consolidation area, and this is usually a sign that a second move is in the works, so with this in mind we advise caution and if a break occurs perhaps it’ll be better to wait for a small retracement before opening new positions.

Resistance Levels

• 2.1148 – Nov 9th High
• 2.1065 – Nov 7th High
• 2.0650 – July 24th High

• 2.0365 – September 12th High

Support Levels

• 2.0000 – Round number
• 1.9800 – Round Number
• 1.9670 – August 17th Low
• 1.9180

EurUsd has retraced towards the middle point of yesterday’s range after finding resistance at the 1.4670 area, looking at last weeks chart we can see that around the mentioned level the pair formed a consolidation pattern, this indicates the importance of the former support turned into resistance zone. Without any more surprises we expect the pair to resume its down trend especially while we are trading below 1.4600.

GbpUsd failed to stay above 1.9600 and after forming a bearish divergence on the smaller timeframes we already saw a test of the 1.9500 support level, if this is breached we expect to retest yesterday’s low at 1.9330 on the way to the bigger bearish target of 1.9180.

EurUsd recovered in yesterday’s session all the points it lost on Monday and than some; after starting the day moving lower the pair bounced from the 1.4360 area and support by fundamental reasons, mainly the FED 0.75% interest rate cut, it pushed higher forming an outside bar on the daily charts and printing a weekly high just below 1.4700. Yesterday’s price action was an pretty interesting, what seemed to be a retracement to a resistance line turned into a large scale move of more 300 points; today’s development could be just as important as the markets are still under the influence of the FED decision and not everyone is completely sold on the lack strength or more likely the weakness of US dollar at the current interest rates. One should trade very carefully these days as we already saw the situation can change very quickly.

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 continued on Tuesday morning the move started on Monday but all of a sudden it reversed on a dime and pushed higher, at first seemed to be a retest of the 1.9500 resistance but when the FED interest rate cut announcement got out the pair moved another 150 points to print a daily hight at 1.9650. We were on right with our assessment that a break under 1.9550 will open up the road toward the 1.9180 target but one couldn’t have foreseen the rather surprising move from the US central bank; looking at the chart below we see that yesterday’s high was pretty close to the 38.2 Fibonacci retracement line of the 1.9790/1.9337 down move and with the oscillators already in overbought territory the bearish bias is still present, and US dollar bulls might not be shaken by the latest developments. A move above yesterday’s high at 1.9650 will certainly give bulls a chance to open new trades but the same is true for bears if the pair continues to slip. Caution is of the essence as more surprises could lie ahead.

Resistance Levels

• 2.1148 – Nov 9th High
• 2.1065 – Nov 7th High
• 2.0650 – July 24th High

• 2.0365 – September 12th High

Support Levels

• 2.0000 – Round number
• 1.9800 – Round Number
• 1.9670 – August 17th Low
• 1.9180

EurUsd broke below the 1.4600 support level and pushed through toward the 1.4450 zone covering more than 140 points in today’s Asian and European session. After such a big drop on a day when we weren’t expecting big volumes we should look for some retracement move for the Us session or at least a slow down and a consolidation just below 1.4500.

GbpUsd traded aroun dthe 1.9500 for most of the day with only one small spike that printed today’s low at 1.9456. After breaking and retesting a support trendline last night just above the 1.9550 area the pair started once again to move lower but with diminished momentum.

EurUsd failed to print a new high on the weekly chart, it stopped just under the November 23rd high at 1.4966 at the resistance offered by the trendline that connects August and September 2007 swing lows. Breaking the weekly movement on a daily basis we see that Monday the pair pushed higher and although it made a new high on Tuesday after that we had a straight down move supported by a speech from an ECB banker and the fact the EurUsd was trading in an overbought area. The weekly low was made on Thursday at 1.4587 and after that we saw the bearish momentum slowing down and the pair closed just above 1.4600. We maintain our bearish bias for the following days with the mention that Monday is a holiday in the US and trading might be slow; perhaps the most important bearish target is December 20th low at 1.4300 which is also an important support level a place where bullish traders will want to use as a base for a repeat of December’s movement.
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 between two important support and resistance levels for the most part of the week, after bouncing from the 1.9550 zone it was rejected by the resistance area above 1.9700 and this scenario repeated 3 times during this past week; only On Thursday the pair managed to spike up toward the 1.9800 level but it lacked strength to stay there and fell back to close the week pips away from the 1.9550 base. A continuation of Friday’s move in the next few days will certainly confirm the bearish trend for the last couple of months, a break below 1.9550 will open up the road to 1.9180 as the main bearish target and support level. Conversely a bounce from the 1.9550 that will get the pair trading above 1.9600 will force us once again in the above mentioned range and we will have to look at 1.9670 as the next short term target. Same as in the EurUsd case the pairs trading volume on Monday will be affected by the US holiday and to some extent we could witness some erratic price action or a very mellow day.

Resistance Levels

• 2.1148 – Nov 9th High
• 2.1065 – Nov 7th High
• 2.0650 – July 24th High

• 2.0365 – September 12th High

Support Levels

• 2.0000 – Round number
• 1.9800 – Round Number
• 1.9670 – August 17th Low
• 1.9180

EurUsd lacked the strength to push through the 1.4600 support level so far, yesterday we saw the par print a new weekly low but it didn’t have the stamina to continue the move form Wednesday. We are pretty much in the same place as yesterday morning, the pair is trading just above the 1.4600 level and is trying to get lower, a break below 1.4600 will confirm the current bearish momentum and will get us closer to the 1.4500 level, the next significant target and support level. Conversely a bounce back from here will bring the pair right back in the 1.4600/1.4835 congestion area.
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 has a spectacular development on Thursday, it tested the 1.9700 resistance then fell back to close to 1.9600 only to swing back up again and this time it got as high as 1.9790 before retracing once again. In today’s Asian session the pair traded more calmly but slowly move lower, when the UK news got out, just a few minutes ago, the par fell sharply and broke below the intermediary support at 1.9650 and at 1.9600 and is now getting closer to the 1.9550 area. This last move looks like it might have enough bearish momentum to finally break out of this weeks range and start a stronger move south toward the 1.9180 bearish target. Conversely a bounce from the 1.9550 that will get the pair trading above 1.9600 will force us once again in the range and will have to look at 1.9670 as an important resistance.

Resistance Levels

• 2.1148 – Nov 9th High
• 2.1065 – Nov 7th High
• 2.0650 – July 24th High

• 2.0365 – September 12th High

Support Levels

• 2.0000 – Round number
• 1.9800 – Round Number
• 1.9670 – August 17th Low
• 1.9180

EurUsd printed a new weekly low this morning just under the 1.4600 level but after that it started retracing toward yesterday’s 50% Fibonacci line at 1.4730 which is also where we have marked on our chart a downsloping trendline connecting Wednesday and Thursday’s highs; the resistance at that level should be enough to turn the pair back down toward the lows.

GbpUsd failed to make a higher high today and bounced back and forth between 1.9600 support and 1.9700 resistance at the moment is trading right in the middle of this range. We expect the pair to at least test the 1.9600 support if not to go a little lower toward the 1.9550 zone.

Euro confirmed the bearish pattern formed on Tuesday and the pair fell sharply on Wednesday supported also by some dovish commentaries from and ECB banker. Yesterday’s range was over 250 points, we haven’t seen such a long candle since mid December, it broke through the closest intermediary support levels and only stopped and bounce back a little around the 1.4600 zone which is also the 61.8 Fibonacci line of the bigger move north from last year. A break below 1.4600 will confirm the current bearish momentum and will get us closer to the 1.4500 level, the next significant target and support level. Conversely a bounce back from here will bring the pair right back in the 1.4600/1.4835 congestion area.
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 performed pretty much the same for two consecutive days this week, on Tuesday and Wednesday the pair failed to make a lower low and bounced from the 1.9550 support zone only to fall tight back in the afternoon; the exception is that on Wednesday it didn’t printed a higher high. So far today we have a range of over 110 points and have already tested yesterday’s high at 1.9720 but is now trading lower. This week has clearly been a consolidation one, where GbpUsd tried several times to break below 1.9550 and failed and also the area above 1.9700 proved to be tough resistance, fin order to see a bigger move we have to wait until we have a clear signal that either the above mentioned support or resistance level have a good chance of being broken, otherwise we recommend caution and patience on this pair.

Resistance Levels

• 2.1148 – Nov 9th High
• 2.1065 – Nov 7th High
• 2.0650 – July 24th High

• 2.0365 – September 12th High

Support Levels

• 2.0000 – Round number
• 1.9800 – Round Number
• 1.9670 – August 17th Low
• 1.9180