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EURUSD and GBPUSD Bullish Threats


Both the Euro and GB Pound have displayed a more robust one so far in 2017 versus the US Dollar.

The intermediate-term trend of USD strength from November-December 2016 has been rejected, whilst the risk is growing for EURUSD and GBPUSD to shift to more bullish outlooks into February.

This requires further rallies: a more bullish tone for EURUSD signalled up through 1.0874 and for GBPUSD needing a break above 1.2775.

Forex technical analysis

EURUSD

A dip lower on Wednesday, through minor support at 1.0750/45, but whilst holding above1.0684 we see bullish pressures still from the surge Tuesday through resistances at 1.0800/05 and the strong rebound Monday, keeping the risk back to the topside Thursday

Furthermore, the mid-January push above 1.0653/70 signalled an intermediate-term shift from bearish to neutral, whilst we also see growing Q1 threat for a push up through 1.0874, which would then shift the intermediate term outlook to bullish.

For Today:

  • We see an upside bias for 1.0811 and then 1.0850, maybe the key 1.0874 peak.
  • But below 1.0729 targets 1.0684.

Short/ Intermediate-term Outlook – Downside Risks:

  • We see a negative tone with the bearish threat to parity (1.0000) and .9900, maybe as deep as .9610

What Changes This? Above 1.0670 signals a neutral tone, only shifting positive above 1.0874.

Daily EURUSD Chart

eurusd chart

GBPUSD

A strong rebound again as anticipated on Wednesday to push up through resistance at 1.2600/05, reinforcing the strong intraday rebound Tuesday from 1.2412, keeping the risks back to the upside Thursday.

Furthermore, the push above 1.2432 shifted the intermediate-term outlook back to a neutral range environment (but with intermediate-term risks up to the key 1.2775 level).

For Today:

  • We see an upside bias for 1.2674; break here aims for 1.2724/28, maybe the key high at 1.2775.
  • But below 1.2542 opens risk down to 1.2412.

Short/ Intermediate-term Range Parameters: We see the range defined by 1.1982 and 1.2775.

Range Breakout Challenge

  • Upside: Above 1.2775 aims higher for 1.3000, 1.3121 and 1.3455/3534 area.
  • Downside: Below 1.1982 sees risk lower for 1.1943, 1.1880 and 1.1500.

Daily GBPUSD Chart

gbpusd chart

Risk Statement: Trading Foreign Exchange on margin carries a high level of risk and may not be suitable for all investors. The possibility exists that you could lose more than your initial deposit. The high degree of leverage can work against you as well as for you.


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