Quote of the day: In today’s regulatory environment, it’s virtually impossible to violate rules. — Bernard Madoff
EURUSD
The euro is retreating from yesterday’s top side at 1.5020 which is inside the resistance region of 1.5000-1.5060 as noted into the chart attached below. Upside is favored and the 1.5 region is expected to remain under pressure as long as short-term support around 1.4850 is intact. Both short-term and medium term studies are bullish – the euro being up .65% per week and 1.85% per month. There is enough room for further upside while the lower territory will be treated as fresh buying opportunities, hence maintaining euro’s bid tone against the buck. The rallies in equity markets are favoring the assault against 1.5000/60 and the S&P500 may face resistance around 1100 while potential pullbacks will bring support formed by former resistance into the 1075 region in focus – corresponding with $1.4850. Current quote is 1.4991 @07:05 GMT
Support: 1.4910/30, 1.4850/65 and 1.4800
Resistance: 1.5000/20, 1.5050/60 and 1.5100
GBPUSD
Cable lost 150 points during an hour as the Fitch agency said that the UK economy was at risk of losing its AAA rating. Although yesterday’s gains have been cleared by current pullback, short-term sentiment remains bullish and fresh buying opportunities emerged into the lower 1.6600 territory. Intra-day momentum is bearish and a break above 1.6700 is needed to re-conquer the upside, signaling that the corrective cycle has ended. In case of more downside pressure, support backs 1.6600 at 1.6550 and 1.6485/00 – formed by the 50% fib ratio of 1.6260-1.6840 and 61.8% – respectively. Current quote is 1.6650 @07:05 GMT
Support: 1.6600, 1.6550 and 1.6485
Resistance: 1.6700, 1.6750, 1.6800 and 1.6830/50
