Daily technical outlook

EURUSD

Trading strategy: standing aside

Yesterday’s trading sessions have been rather quiet after the slide to as low as 1.2550 against the dollar. First intra-day resistance is currently limiting gains around 1.2615 but the short-term studies remain bullish as long as the euro doesn’t return below the 1.2300 handle. However, the 4 hrs charts are showing signs of trend exhaustion and a break above 1.2650 is needed to regain strength and confirm that the drop to 1.2550 was corrective. Today’s economic calendar contains some important data releases such as the German Zew at 10:00 GMT and the US Trade Balance at 13:30 GMT. Keep an eye on the 1.2650 region in case euro rebounds – breakout should provide an earlier buying opportunity – 1.2715 being a more important barrier. On the lower side – 1.2550 is where to look for shorting opportunities. Current quote is 1.2589 @06:00 GMT

Support: 1.2550, 1.2500/20, 1.2465, 1.2400 and 1.2300
Resistance: 1.2615, 1.2650, 1.2700/10, 1.2750 and 1.2800
Market sentiment: long term – bearish, medium term – bearish, short term – bullish, intra-day – bearish

GBPUSD

Trading strategy: small short at 1.5100, stop at 1.5170 (0.5% risk), 1st objective at 1.5050, 2nd objective at 1.4900

Resistance was found around 1.5080 – into former support zone provided by the rising trend line connecting previous weekly lows. The bounce came after the sell-off to 1.4950. Whole downside action is not convincing and the decline to 1.4950 was short-lived, thus we shouldn’t hurry to consider the trend line break a sign of trend reversal. Short-term sentiment remains bullish but the intra-day studies are favoring selling while the pound doesn’t reconquer 1.5100. Current quote is 1.5011 @06:00 GMT

Support: 1.5000, 1.4950 and 1.4850/80
Resistance: 1.5100, 1.5200/25, 1.5250/70 and 1.5300
Market sentiment: long term – bearish, medium term – bearish, short term – bullish, intra-day – bearish