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Technical Update - EURUSD testing key resistance, eyeing 1.15. GBPUSD above 1.30 looking at 1.33. Dollar Index below key support
Kim Cramer Larsson
Technical Analyst, Saxo Bank Group
Summary: EURUSD testing key strong resistance. A likely break could pave the road to 1.14-1.15
Dollar Index has taken out key strong support after several tries. 98-97 in sight
GBPUSD above 1.30. Next 1.33? Uptrend is strong
EURUSD propelled higher yesterday and is continuing todays getting within in a few cents from the strong resistance level at around 1.1185. See weekly chart
RSI is on both daily and weekly showing positive sentiment with no divergence indicating higher EURUSD levels are likely
To reverse the uptrend a close below 1.0830 is needed.
If EURUSD closes above 1.1185 there is room up to next strong resistance at around 1.1483.
The Dollar Index. After forming a Descending triangle like pattern the Index has taken out the key strong support at around 100.68 and is on course to next support at around 98.63 which is the upper band in the consolidation area 98.63 – 97.44 around the 200 weekly Moving Average.
Both daily and weekly RSI are below 40 threshold indicating likely lower levels.
GBPUSD uptrend is continuing and doesn’t seem to be stopping anytime soon after taking out resistance at around 1.3025.
There is minor resistance at around 1.33.
Short-term the uptrend is a bit stretched with daily RSI above 75 and a minor correction could soon be seen. However, the trend is up and GBPUSD is likely to move higher towards 1.300 over the next couple of weeks.
Daily Bollinger Bands are expanding indicating we are still in the initial stage of the uptrend
To reverse this strong uptrend a close below 1.2590 is needed.
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