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EURUSD
Resistance: 1.3071 minor / 1.3120 moderate / 1.3168 minor
Support: 1.3018 strong / 1.3000 psychological / 1.2964 minor
After the Berlusconi driven sell-off Monday we have EURUSD turning out a high wave doji yesterday with finding support at the approach of the psychological 1.3000 area. Daily indicators have stochastic in oversold levels while macd is dropping. Intraday we are seeing mixed signals the 4H stochastic crossing down while macd bottoms up and in hourly charts stochastic is coming out of overbought areas while macd is opening higher. With mixed signals in intraday charts we are not inclined to take any immediate action though the loss of bearish momentum as suggested by the daily doji has us looking for a possible bounce, perhaps just off the psychological support area at 1.3000.
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GBPUSD
Resistance: 1.5152 moderate / 1.5193 moderate / 1.5217 minor
Support: 1.5113 minor / 1.5069 moderate / 1.5000 psychological
Attempts to get a follow through to monday’s gap covering failed Tuesday with Cable selling off in midday European trade. This follows the broader risk averse theme with markets getting hit by the Italian election and approaching sequestration in the US. Among indicators we have daily macd heading lower though stochastic has taken a peek from oversold areas while the gap between prices and the EMA lines have widened. Intraday we have mixed signals with stochastic oversold and macd above the signal line for 4H charts. In the hourly level we have a bearish macd while stochastic is poised to cross lower. Given the fundamental issues hounding the UK we prefer looking for shorts until 1.5000. Consider a sell on rallies to 1.5193 or on an hourly push below 1.5113.
