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Daily Technical view July 19th
[FONT=Verdana][SIZE=2][COLOR=#000000]EUR/USD Technical View[/COLOR][/SIZE][/FONT] [FONT=Verdana][SIZE=2][COLOR=#000000] [/COLOR][/SIZE][/FONT] [FONT=Verdana][SIZE=2][COLOR=#000000] Euro formed an outside bar yesterday, making a lower low at 1.3750 and a new high at 1.3830, overall the bulls had a little bit more strength as the close was slightly higher than the open. Although we made a new high the pair is still in a consolidation period and until we see a break above 1.3810/30 one can't be sure about the trend continuation, if price does break the above mentioned resistance the next bullish target might be the 1.3900 round number and on a longer term the 1.4000. Conversely a failure of breaking new highs in the following days will start to put downside pressure on the pair as bears will open up new trades, with that in mind bellow 1.3800 [COLOR=#000000]closest support level we can spot is the 1.3750 round number which if breached will give us a sign that a bigger move south might happen; lower down we have a previous resistance area now turned into strong support at 1.3660/80, this is the main mid-term bearish target, and if the pair gets that low it will put up a fight, if Euro doesn't find any decent support at 1.3660/80 it will more than likely sink towards the 1.3550/60 which is another significant support area. [/COLOR][/COLOR][/SIZE][/FONT] [FONT=Verdana][SIZE=2] [/SIZE][/FONT] [FONT=Verdana][SIZE=2] [/SIZE][/FONT] [FONT=Verdana][SIZE=2] Resistance Levels[/SIZE][/FONT] [LIST] [*][FONT=Verdana][SIZE=2]1.3830 – July 18th High[/SIZE][/FONT] [*][FONT=Verdana][SIZE=2]1.3750 – round number [/SIZE][/FONT] [/LIST] [FONT=Verdana][SIZE=2] Support Levels [/SIZE][/FONT] [LIST] [*][FONT=Verdana][SIZE=2]1.3680 – April 27th High [/SIZE][/FONT] [*][FONT=Verdana][SIZE=2]1.3550 – June 5th High[/SIZE][/FONT] [*][FONT=Verdana][SIZE=2]1.3459 – May 10th/11th Low [/SIZE][/FONT] [/LIST] [LIST] [*][FONT=Verdana][SIZE=2]1.3365 – December 3rd High [/SIZE][/FONT] [/LIST] [FONT=Verdana][SIZE=2][COLOR=#000000] [/COLOR][/SIZE][/FONT] [FONT=Verdana][SIZE=2][COLOR=#000000] GbpUsd Technical View[/COLOR][/SIZE][/FONT] [FONT=Verdana][SIZE=2] [/SIZE][/FONT] [FONT=Verdana][SIZE=2][COLOR=#000000] [/COLOR][/SIZE][/FONT] [FONT=Verdana][SIZE=2][COLOR=#000000] Cable continued its trend making another record high at 2.0545, getting a few pips bellow the resistance level we mentioned yesterday. We did see 2 attempts of getting above 2.0550 but both failed for the time being, this level might prove to be a significant resistance and at least slow down the move up if not be the base point for a retracement of some sort; if that will not be the case and the pair will get above it the next bull target is the 2.0600 round number. As we've mentioned in our previous commentary we need to keep an eye open for a possible future retracement [COLOR=#000000]as the pair is forming a bearish divergence on the daily charts, but that will have to be confirmed by price action; in that respect we have a number of former resistance level now turned into support, close we have the 2.0300 if this doesn't hold an eventual price retracement bears might start putting pressure and push cable lower towards the 2.0200 support level, if that also fails we have April 18[/COLOR][COLOR=#000000]th[/COLOR][COLOR=#000000] high at 2.0133 as an intermediary support before the 2.0050 level and the 2.000 round number.[/COLOR][/COLOR][/SIZE][/FONT] [FONT=Verdana][SIZE=2] [/SIZE][/FONT] [FONT=Verdana][SIZE=2] [/SIZE][/FONT] [FONT=Verdana][SIZE=2] [/SIZE][/FONT] [FONT=Verdana][SIZE=2] [/SIZE][/FONT] [FONT=Verdana][SIZE=2][COLOR=#000000] Resistance Levels[/COLOR][/SIZE][/FONT] [LIST] [*][FONT=Verdana][SIZE=2]2.0550 – round number[/SIZE][/FONT] [*][FONT=Verdana][SIZE=2]2.0360 – July 11high[/SIZE][/FONT] [*][FONT=Verdana][SIZE=2]2.0280 – July 10 High [/SIZE][/FONT] [/LIST] [FONT=Verdana][SIZE=2] Support Levels[/SIZE][/FONT] [LIST] [*][FONT=Verdana][SIZE=2]2.0200 – Round number [/SIZE][/FONT] [*][FONT=Verdana][SIZE=2]2.0133 – April 18th High [/SIZE][/FONT] [*][FONT=Verdana][SIZE=2]2.0060/70 – April 25th High [/SIZE][/FONT] [/LIST] [LIST] [*][FONT=Verdana][SIZE=2]1.9840/70 – May 4th / December 1st 2006 High [/SIZE][/FONT] [*][FONT=Verdana][SIZE=2]1.9750/60 – retested level, May 11th low [/SIZE][/FONT] [/LIST]