Weekly technical outlook, by Liviu Flesar Projected bearish targets: 1.28, 1.276 and 1.268 EURUSD 4 hrs. chart: Projected bearish targets: 1.891, 1.888 and 1.879.
EURUSD
Euro reached key support in the 1.286/7 area, breaking the major support levels in the 1.29 area. After breaking 1.299 which acted as a key permited retracement before steping foward to 1.31/32, the bearish sentiment on both hourly and daily studies is now re-focused. Influenced by the losses versus the Yen and the British Pound, the Euro may continue losing ground versus the dollar holding under the strong resistance levels now seen in the 1.29 area. A break below 1.281 may extend the dollar gains towards the dips of 1.27 area. On the other hand, the ranging movement in the 1.28-1.3 zone may continue favoring both short-term bulls and bears. An escape from this range aiming 1.31 is possible if both EURJPY and EURGBP will reverse as soon as possible and if the US economic events of the next week won’t favour the greenback. Therefore, only a violent breach of the resistance levels seen in the 1.29 area will bring a potential rally above 1.31 in focus providing more confidence in a bullish Euro sentiment.
Projected bullish targets: 1.306, 1.31, 1.322.
GBPUSD
Holding under the major resistance at 1.917 but still testing support on the upward trendline seen on the below chart, bullish momentum remains intact focusing a potential rally towards 1.92 and above. 50% fib. extension of the 1.877-1.921-1.899 moves is seen at 1.921 which continues to be an intact objective as long as the Pound will manage to hold above 1.9.
A breach of the mentioned trendline will face support in the dips of 1.89 and at 1.885. In case of a retracement, 1.891 will act as a good support, being the .50 fib of the 1.859-1.921 move. In this case, we believe that even a trendline break won’t affect the mid-term bullish momentum but only a breach at 1.891 will favour the greenback to keep the 1.92 level far away.
Projected bullish targets: 1.921, 1.926 and 1.935.
GBPUSD 4 hrs chart:
A week ahead(05/02-05/06)
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