In Swissquote’s Friday short term technical trading report, the research team outlines the major technical levels of popular currency instruments with forecasts, below is the outline for EUR/USD and GBP/USD. To view and download the entire report, click here (PDF).
EUR/USD: Trying to bounce
• EUR/USD has broken the strong support at 1.3296. The short-term technical structure is
negative as long as prices remain below the hourly resistance at 1.3336 (12/08/2014 low). The initial resistance at 1.3297 (intraday high) is challenged. An hourly support now lies at 1.3242 (21/08/2014 low).
• In the longer term, EUR/USD is in a succession of lower highs and lower lows since May 2014. A downside risk is given by 1.3210 (second leg lower after the rebound from 1.3503 to 1.3700). A key support now stands at 1.3105 (06/09/2013 low), whereas a key resistance lies at 1.3444 (28/07/2014 high).
GBP/USD: Pausing near the support at 1.6556
• GBP/USD is in a declining trend as long as prices remain below the resistance at 1.6739.
Monitor the support at 1.6556. An initial resistance lies at 1.6679.
• In the longer term, the break of the key support at 1.6693 (29/05/2014 low, see also the 200 day moving average) invalidates the positive outlook caused by the previous 4-year highs. However, the lack of medium-term bearish reversal pattern and the short-term oversold conditions do not call for an outright bearish view. A key support now stands at 1.6460 (24/03/2014 low).
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