EUR/USD in a consolidative mode
EUR/USD moved in a consolidative manner on Friday between the support line of 1.2430 (S1) and the resistance of 1.2490 (R1). As long as the rate stays below the black downside resistance line taken from back at the high of the 15th of October, I would consider the near-term bias to be to the downside and I would expect the rate to challenge again the 1.2400 (S2) line in the close future. On the daily chart, the overall trend of EUR/USD stays to the downside, but given the positive divergence between our daily oscillators and the price action, I would prefer to see a decisive dip below 1.2360 (S3) before getting more confident on longer-term downtrend. Such a break is likely to pave the way for the 1.2250 area, defined by the lows of August 2012.
• Support: 1.2430 (S1), 1.2400 (S2), 1.2360 (S3).
• Resistance: 1.2490 (R1), 1.2530 (R2), 1.2575 (R3).
GBP/USD near the 1.5600 line again
GBP/USD slid after finding resistance near 1.5800 (R2). Today, during the Asian morning, the rate found support again near the 1.5600 (S1) line. I would expect a clear and decisive dip below that support obstacle to pull the trigger for the psychological zone of 1.5500 (S2). Shifting our attention to our short-term oscillators, I see that both of them dipped below their black upside support lines. Moreover, the RSI declined to hit its 30 line, while the MACD fell below both its zero and signal lines. These signs designate negative momentum and amplify the case that we are likely to see Cable lower in the near future. As for the broader trend, the price structure remains lower peaks and lower troughs below the 80-day exponential moving average, thus I would consider the overall picture of GBP/USD to stay negative.
• Support: 1.5600 (S1), 1.5500 (S2), 1.5430 (S3).
• Resistance: 1.5730 (R1), 1.5800 (R2), 1.5950 (R3).