Technical Update - EURUSD and GBPUSD seem to find some support but selling pressure likely to return Technical Update - EURUSD and GBPUSD seem to find some support but selling pressure likely to return Technical Update - EURUSD and GBPUSD seem to find some support but selling pressure likely to return

Technical Update - EURUSD and GBPUSD seem to find some support but selling pressure likely to return

Forex 2 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank

EURUSD has dipped lower to the 1.764 projection of the early April bullish correction at 1.0602.
Short-term the sell-off seen since 10th April seems overdone. If EURUSD gets a positive close to the day a correction up to the 0.382 retracement at 1.0710 could unfold

A break! Below todays low at 1.0602 the downtrend is to be extended down to the 2.00 projection at 1.0564

The overall trend short- and medium-term is bearish
Looking at the weekly chart EURUSD has broken bearish out of the triangle like pattern and is currently finding some support at the 200 weekly Moving Average.

Weekly RSI is exhibiting negative sentiment suggesting lower EURUSD levels. Further selling in coming weeks to the lower part of the triangle at around 1.0448 is in the cards

To reverse this trend a close above 1.0885 is required!

eurusd d 1604
Source all charts and data: Saxo Group
eurusd w 1604

GBPUSD has dipped down to the 1.764 projection of the early April bullish correction and support at 1.2410.
Short-term a bounce and minor correction is likely to unfold. A correction that could take GBPUSD to the 0.382 retracement at 1.2523 before downtrend is likely resuming

If GBPUSD is breaking ! below today’s low at 1.2408 GBPUSD is likely to test the support at t 1.2375

A daily close below 1.2375 is likely leading to further selling down to support at around 1.2222
A closed above 1.2710 is required to reverse the trend

Medium-term weekly chart GBPUSD has broken below key support at around 1.25 thus in a bearish trend

However, the strength indicator RSI is still exhibiting positive sentiment and needs to close below 40 to move into negative. If it does GBPUSD could drop further to around 1.2220

gbpusd d 1604
gbpusd w 1604

Disclaimer

The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
Full disclaimer (https://www.home.saxo/legal/disclaimer/saxo-disclaimer)
Full disclaimer (https://www.home.saxo/legal/saxoselect-disclaimer/disclaimer)

Saxo Bank A/S (Headquarters)
Philip Heymans Alle 15
2900
Hellerup
Denmark

Contact Saxo

Select region

International
International

Trade responsibly
All trading carries risk. Read more. To help you understand the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more

This website can be accessed worldwide however the information on the website is related to Saxo Bank A/S and is not specific to any entity of Saxo Bank Group. All clients will directly engage with Saxo Bank A/S and all client agreements will be entered into with Saxo Bank A/S and thus governed by Danish Law.

Apple and the Apple logo are trademarks of Apple Inc, registered in the US and other countries and regions. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC.