2007 June

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EUR/USD Technical View

Euro has basically traded around the 1.3460 level all week and although it has given us some bearish signs a breakout of this range could happen either way. At this time traders are more than likely waiting for a good reason to buy or sell with bulls and bears being in a balance, the move will probably be triggered by a news announcement or an event in the following days. Closest support once the pair gets in last weeks range is the low of that range at 1.3365, if this level fails and the pair breaks bellow with we have June 13^th low at 1.3260 as the next clear cut support level followed lower by the 1.3160 .50 Fib of the February-March range. Conversely if EurUsd doesn’t break bellow 1.3365, last week’s range between 1.3365 and 1.3410 might become a base for another push north, if that happens the first bull target will be yesterday’s high at 1.3477 before possibly getting above 1.3500 and towards June 5^th high of 1.3550.

Resistance Levels

• 1.3680 – April 27th High
• 1.3630 – May 7th High
• 1.3550 – June 5th High
• 1.3459 – May 10th/11th Low

Support Levels

• 1.3365 – December 3rd High
• 1.3300 – January 7th High
• 1.3260 – February 27th High
• 1.3160 – .50 Fib of Feb-March range

GbpUsd Technical View

Cable is trading above the 2.0000 level but it doesn’t seem to have much momentum, the same as in the Euro we can see on the daily charts the pair is somewhat overbought looking at the oscillators and that is just another reason for bears to hold on to their position and why not perhaps add something. If the pair holds on to its current levels the bullish trend remains valid and with that in mind one can look for resistance levels, just above today’s high is the 2.0060 level established on April 25^th high, which is the only intermediary resistance level between current trading price and the YTD high at 2.0133. Conversely if the pair fails to hold onto its gains and starts slipping one has to be aware of future support levels, most of them are former resistance and once broken they turned into support. 2.0000 can act both ways, and while we are trading above it is more of a support level now, next we have the 1.9950 level followed closely by the 1.9900 round number, if these support level fail to bounce the pair back up we need to look lower down at the 1.9840/70 area and even lower at the all important 1.9750 level.

Resistance Levels

• 2.0200 – Round number
• 2.0133 – April 18th High
• 2.0060/70 – April 25th High

Support Levels

• 1.9840/70 – May 4th / December 1st 2006 High
• 1.9750/60 – retested level, May 11th low
• 1.9700 – May 18th Low
• 1.9670 – February 21st Low
• 1.9550 – .50 Fib

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EUR/USD Technical View
Euro recovered what has lost yesterday morning and it is trading, again, around the 1.3460 resistance. This is the 4^th consecutive day in which the pair has been confined in this small range and one can expect a decent breakout on either side but with a slight increased bearish bias, in this respect we can’t but mention the same levels as in the previous days. Closest support once the pair gets in last weeks range is the low of that range at 1.3365, if this level fails and the pair breaks bellow with we have June 13^th low at 1.3260 as the next clear cut support level followed lower by the 1.3160 .50 Fib of the February-March range. Conversely if EurUsd doesn’t break bellow 1.3365, last week’s range between 1.3365 and 1.3410 might become a base for another push north, if that happens the first bull target will be yesterday’s high at 1.3477 before possibly getting above 1.3500 and towards June 5^th high of 1.3550.

Resistance Levels

• 1.3680 – April 27th High
• 1.3630 – May 7th High
• 1.3550 – June 5th High
• 1.3459 – May 10th/11th Low

Support Levels

• 1.3365 – December 3rd High
• 1.3300 – January 7th High
• 1.3260 – February 27th High
• 1.3160 – .50 Fib of Feb-March range

GbpUsd Technical View

Cable finally managed to creep up above the 2.0000 level in Today’s Asian session after what seemed to be another failed attempt in Yesterday’s trading. As long as the par stays above 2.0000 we can confidently be on the look out for resistance levels that might slow down the move up. Just above today’s high is the 2.0060 level established on April 25^th high, which is the only intermediary resistance level between current trading price and the YTD high at 2.0133. Conversely if the pair fails to hold onto its gains and starts slipping one has to be aware of future support levels, most of them are former resistance and once broken they turned into support. 2.0000 can act both ways, and while we are trading above it is more of a support level now, next we have the 1.9950 level followed closely by the 1.9900 round number, if these support level fail to bounce the pair back up we need to look lower down at the 1.9840/70 area and even lower at the all important 1.9750 level.

Resistance Levels

• 2.0200 – Round number
• 2.0133 – April 18th High
• 2.0060/70 – April 25th High

Support Levels

• 1.9840/70 – May 4th / December 1st 2006 High
• 1.9750/60 – retested level, May 11th low
• 1.9700 – May 18th Low
• 1.9670 – February 21st Low
• 1.9550 – .50 Fib

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EUR/USD Technical View

Euro slipped lower early Today in the Asian trading session, and by the way things look now it seems that the 1.3460 level was to strong for the pair to break it. With oscillators on the daily chart in the overbought area and price being rejected at a significant resistance level, we have to be on the look out for future support levels as the bears are starting to be those in charge. Closest support once the pair gets in last weeks range is the low of that range at 1.3365, if this level fails and the pair breaks bellow with we have June 13^th low at 1.3260 as the next clear cut support level followed lower by the 1.3160 .50 Fib of the February-March range. Conversely if EurUsd doesn’t break bellow 1.3365, last week’s range between 1.3365 and 1.3410 might become a base for another push north, if that happens the first bull target will be yesterday’s high at 1.3477 before possibly getting above 1.3500 and towards June 5^th high of 1.3550.

Resistance Levels

• 1.3680 – April 27th High
• 1.3630 – May 7th High
• 1.3550 – June 5th High
• 1.3459 – May 10th/11th Low

Support Levels

• 1.3365 – December 3rd High
• 1.3300 – January 7th High
• 1.3260 – February 27th High
• 1.3160 – .50 Fib of Feb-March range

GbpUsd Technical View

Cable, after another failed attempt to get above the 2.0000 level, has also slipped lower and is trading just bellow the 1.9950. Yesterday’s price action had another try at the 2.0000 resistance but although it got above it on the lower timeframes the pair just didn’t have enough strength to close above it on the hourly charts, after that failed attempt the bears just took control and the pair has slowly reversed into a downtrend. With the current status GbpUsd is in one has to be aware of future support zones, trading bellow 1.9950 the closest support level is the 1.9900 round number, lower down we have the 1.9840/70 range and even lower is the starting point of this last leg-up at 1.9670. If any of the above mentioned support levels prove to be strong enough in order that price will halt or even bounce from them we can see another try at taking out the 2.0000 level.

Resistance Levels

• 2.0200 – Round number
• 2.0133 – April 18th High
• 2.0060/70 – April 25th High
  

Support Levels

• 1.9840/70 – May 4th / December 1st 2006 High
• 1.9750/60 – retested level, May 11th low
• 1.9700 – May 18th Low
• 1.9670 – February 21st Low
• 1.9550 – .50 Fib

EuroUsd technical View

Euro seems to have come to a halt, trading around the 1.3460 for two days now. Like we said in our previous commentaries in order for the uptrend to keep its momentum intact the pair needs to go across the 1.3500 level which it hasn’t until now. If that happens we can clearly spot the future possible targets and resistance areas, first bull target is the 1.3500 level before the June 5th high at 1.3550, once up there sights will be set on the 1.3610/30 resistance area as an intermediary target before the YTD high at 1.3680. As far as the possibility of a reversal one has to be aware of former resistance now turned support levels, a failure to get above 1.3460 and later over 1.3500 will put pressure on the pair and this will open up bearish targets, closest support areas is the 1.3365/1.3410 followed by June 13th low at 1.3260 before the the 1.3160 .50 Fib of the February-March range.

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There was an article in yesterdays London Sunday Times Sports section on the Formula 1 phenomena that is Lewis Hamilton.

For those who are not aware Lewis is the leader of this years Formula 1 racing championship. Perhaps nothing too amazing there until you realise that he is a complete rookie. He has only competed in 7 Formula 1 races however his results have been fantastic; a third place, four seconds and two victories – a trophy (and podium finish) for every race and a respectable 10 point lead.

The author (himself an ex F1 driver) makes a serious point about the mind management help he has received in his training and pays attention to the Mental Conditioning Coach that Lewis uses to help provide him the edge in his driving. Read the rest of this entry »