Euros have come lower as expected and we have seen a break of the 1.3410 support. This is quite significant now and does leave the weekly uptrend at 1.3210 exposed for the remainder of the week...However...today we have a small uptrend coming in on the daily charts at the 1.3305 area and we would look initially for this to hold.
We see a bounce back from these lower levels, given the oversold conditions on the 60 min charts therefore we look to cover all short positions in this area. We look for a bounce back to 1.3410 possibly 1.3460 before weakness resumes…
A loss of 1.3300 however will make us look weaker and we view 1.3260 as the immediate attraction. We see this as good support and we will hold longs here adding to 1.3320 and would only place stops if we
lost the weekly uptrend line.
GBP/USD: Cable has come lower as anticipated after reaching our 1.5720 target. We look set now to come back and test 1.5590/80 which should offer good protection from selling pressure. However if lost we look for 1.5535 to entice where again we view to cover all short positions.
We would attempt longs on dips to these lower levels….and we will hold unless a break of 1.5485 occurs. If we do lose this support we look for further weakness leading down to 1.5420 possibly 1.5395.
Our break higher level on the topside is 1.5640. If we do manage to break through this barrier we look for another test towards the 1.5720 resistance. As stated this is good resistance and we view to cover all longs to here. We would re-sell the market at these higher levels and we will hold unless we break the 1.5765 mark.