Swissquote Daily Technical Report: EUR/USD – Will the key support at 1.3105 hold?

In Swissquote’s Thursday 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: Will the key support at 1.3105 hold?

• EUR/USD is testing its key support at 1.3105 (06/09/2013 low). Will today’s ECB meeting be
able to push prices lower? Hourly resistances stand at 1.3221 (28/08/2014 high) and 1.3297 (22/08/2014 high). Another support is given by the psychological threshold at 1.3000.

• In the longer term, EUR/USD is in a succession of lower highs and lower lows since May 2014. A
long-term decline towards the strong support area between 1.2755 (09/07/2013 low) and 1.2662 (13/11/2012 low) is favoured. However, in the shorter term, monitor the test of the key support at 1.3105 (06/09/2013 low) given the general oversold conditions. A key resistance lies at 1.3444 (28/07/2014 high).

GBP/USD: Challenging the key support at 1.6460

• GBP/USD continues to challenge its key support at 1.6460. The current lack of bounce
indicates persistent short-term selling pressures. Hourly resistances stand at 1.6563 (29/08/2014 low) and 1.6644 (01/09/2014 high).

• 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. Key supports stand at 1.6460 (24/03/2014 low) and 1.6220 (17/12/2013 low).

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