In the technical analysis report, EUR declined -0.07% against the USD today during Asian session. EUR/USD market was closed at 1.1201. Day’s Range for today 1.1104 – 1.1204
Last week EUR/USD dipped to 1.1103 but quickly recovered.
Initial bias stays neutral this week first as per technical analysis. Break of 1.1278 resistance will extend recent rise but we’d look for strong resistance at 1.1426 to limit upside. On the downside, below 1.1103 will revive the bearish case that rebound from 1.0911 is already completed at 1.1365. Further break of 1.0911 will also affirm the case that whole rebound form 1.0517 is completed at 1.1615 and will target a test on 1.0517 low.
In the long term picture, price actions from 1.6039 (2008 high) is viewed as a corrective move. There is no clear sign that it’s completed yet. And we’ll still expect more downside towards 0.8223 low as long as 1.2042 resistance holds.
Today GBP declined -0.25% against the USD during Asian session and yesterday market was closed at 1.2436.
Last week before recovering GBP/USD dropped suddenly to as low as 1.1946 . Some consolidations could be seen in near term after climax selling. But outlook will stay bearish as long as 1.2684 resistance holds. Current down trend would target 100% projection of 1.5016 to 1.2794 from 1.3444 at 1.1222. Break of 1.2684 will suggest short term bottoming and bring lengthier consolidation before down trend resumption.
In the technical analysis pair shows down trend from 2005 high of 2.1161 is still in progress and met 61.8% projection of 2.1161 to 1.3503 from 1.7190 at 1.2457 already. Oversold condition in both weekly and monthly RSI suggests a bounce is due. However, there is no clear sign of bottoming yet. And sustained trading below 1.2457 could pave the way to 100% projection at 0.9532. Overall, break of 1.3444 resistance is needed to confirm medium term bottoming. Otherwise, outlook will remain bearish.
In the longer term picture, no change in the view that down trend from 2.1161 is still in progress. Current momentum suggests that there is little chance of long term bottoming yet. GBP/USD could extend to have a take on parity and possibly further to 100% projection of 2.1161 to 1.3503 from 1.7190 at 0.9532.