GBP/USD & EUR/USD
Fri, Oct 30 2009, 07:50 GMT
by Carol Harmer
GBP/USD
Once 1.6440 resistance broke, this was a one way street to 1.6606. Now this has eased back from the highs, but currently holding the first short term fib at 1.6520 and this will be the level to watch this session.
If this support holds then 1.6640 will be the immediate objective. Here longs should be covered. Reinstate longs over 1.6640. A break above here sees this come higher for 1.6680 initially, with greater potential for 16720/40. Once more longs can be covered. Sellers will be able to enter here, as it is a low risk trade to sell these highs. If 1.6760 breaks though all shorts are out as the market will then try and make its way to 1.6830/35. Once more cover longs. Re-instate longs only above 1.6850.
If back through 1.6510 there will be a little pressure on the downside with 1.6440/20 then the short term objective. Here you should be covering al shorts. Attempt small longs to here, but do not hold on a break of 1.6420.
EUR/USD
Eur/Usd has a little double top on the hourly charts at 1.4862 and this currently is keeping a lid on prices. The short and longer term stochastics do still point lower and therefore a break of 1.4815 this morning would make the market weaker with 1.4785/70 then the short term objective.
Here sellers will cover. They will look to re-instate shorts on a break of 1.4770 as this would lead the market lower for 1.4750/40.
Once more shorts are to be covered. Small longs may be attempted to here, but you will have to quickly jump out of longs if 1.4720 breaks. A loss of this support sees the market come lower for 1.4685/80 which has held the past two sessions. However if lost look for 1.4631/25.
Now as stated there is a little top at 1.4862. If this top gets broken and 1.4885 trades there is not much to hold this until 1.4929/30. Buyers will be taking profits at these higher levels. Sellers may enter, but again stops to be kept tight above 1.4965.
