EUR/USD, GBP/USD Trading Near Important Resistance

A flurry of important macroeconomic indicators released recently from the US added to the uncertainty over Fed’s massive $85 billion monthly asset purchase program and failed to decide the near-term direction for the US Dollar. Monday’s better-than-expected ISM Services PMI data from the US helped offset some of the pessimism following Friday’s disappointing Non-farm payrolls data and supported the US Dollar from falling further.

With relatively less in terms of important economic indicators scheduled for release in the upcoming week, here is a technical outlook for the EURUSD and GBPUSD currency pairs. Also read: Can US Dollar Regain Positive Momentum.?

EURUSD

•EURUSD continues trading side-ways within a broad trading range between 1.3300 on the upside and 1.3200 on the downside representing a descending trend-line resistance extending from 2013 high through June 2013 and 50% Fibonacci Retracement Level of 1.3710 – 1.2746 downfall respectively. The pair has failed to decisively break-out either above 1.3300 or below 1.3200 and seems to consolidate before breaking in either direction and deciding the next leg of big-move in either direction.

•Should the pair now struggle to hold 1.3200 – 1.3180 immediate strong support, the pair might immediately drift lower towards a very important support near 1.3130 – 1.3110 zone consisting of 200-day SMA and 38.2% retracement level. Moreover, a decisive break below 1.3100 support area could possibly confirm near-term break on the downside for the currency pair and the pair could than accelerate the downfall towards a very important psychological support near 1.3000 region. Furthermore, as has been repeatedly mentioned in previous reports, should the pair decisively fall below 1.3000 support, the pair could be vulnerable to re-test 2013 weekly closing lows (1.2820 – 1.2810 zone) in the near-term.

•Alternatively, should the pair manage to strengthen above 1.3300 – 1.3320 strong hurdle, it seems to continue appreciating initially towards 1.3340 – 1.3460 resistance zone. The pair could then be heading towards 2013 highs, 1.3650 – 1.3700 zone, in the near-future.

GBP/USD

•After reclaiming 1.5400 resistance zone but failing to sustain above 1.5400 in late June, GBPUSD currency pair weakened to test 1.5100 round figure support on Aug. 2 just to recover sharply back towards 1.5400 strong resistance zone led by recent strong economic data from the UK. However, even after its recent sharp pull-back from 1.5100 to almost 1.5400, the pair has not been able to decisively conquer 1.5400. This 1.5400 zone, representing 61.8% Fibonacci Retracement Level of 1.5750 – 1.4812 downfall, could continue to act as important pivot point for the pair’s further up-move in the near-term.

•Should the pair manage to sustain above 1.5400, it seems to immediately strengthen towards 1.5450 area, the 200-day SMA region. Further, should the pair decisively clear the 200-day SMA resistance, it is likely to continue its upward trajectory in the near-term towards 1.5570 – 1.5600 horizontal resistance zone.

•On the downside, 100-day SMA currently near 1.5320 followed by 1.5290 – 1.5280 zone representing 50% retracement level seems to provide immediate support for the currency pair.

•Further, failure to decisively move above 1.5400 strong resistance zone and weakening below 100-day SMA support would probably suggest underlying weakness and the pair could drift lower towards 1.5170 – 1.5160 zone (38.2% retracement level) with intermediate support near 1.5220 – 1.5210.

Original Article: Admiral Markets and hyper link Admiral Markets with http://www.admiralmarkets.com/