EUR/USD
Larger timeframes
Yesterday, the euro bulls took the lead, pushing EUR/USD up from the current support levels. As a result, they completed the latest corrective decline, updating the high at 1.0974. When the instrument goes ahead with its climb, the bulls' goal is to ensure the 100% challenge of the daily level at 1.1015 and to hit a multi-month high at 1.1033. Once these highs are conquered, this price action will open the way to the next monthly resistance at 1.1221. The supports, from which the bulls managed to bounce back and halt the correction this time, remain valid and they currently converged around 1.0897 – 1.0901 (daily short-term trend + monthly medium-term trend).
H4 – H1
On smaller timeframes, the main advantage at the moment of analysis belongs to the bulls. If they continue setting the tone today, upward intraday targets are the resistance levels of the classic Pivot levels such as 1.1025 – 1.1058 – 1.1116. However, despite the bullish advantage, a corrective decline is now unfolding on smaller timeframes. The most significant targets for the correction are the key levels of 1.0967 (central intraday Pivot level) and 1.0918 (weekly long-term trend). If EUR/USD settles below, it will change the current balance of trading forces on smaller timeframes.
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GBP/USD
Larger Timeframes
The pound doesn't give up hope of completing the current correction, using the support of the daily short-term trend at 1.2399. The high of the correction is located at 1.2524. After that, the market will focus its efforts on the 100% execution of the daily target at the breakout of the Ichimoku cloud (1.2580). It will be followed by a new bullish target, currently located at 1.2760, monthly Fibo Kijun.
H4 – H1
On smaller timeframes, GBP/USD is currently trading above the key levels around 1.2457-31 (weekly long-term trend + central Pivot level of the day). So, the main advantage is on the side of the bulls. Higher upward intraday targets are determined at 1.2516 – 1.2553 – 1.2612, all of them are classic pivot levels. If the instrument settles below 1.2458-31 and in case of the reversal of the moving average, the balance of trading interests will shift. This will set the stage for reinforcing the bearish sentiment. The targets will be the supports of the classic pivot levels, which can be recognized today at 1.2420 – 1.2361 – 1.2324.
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This technical analysis is based on the following ideas:
Larger timeframes - Ichimoku Kinko Hyo (9.26.52) + Fibo Kijun levels
Smaller timeframes - H1 – classic pivot points + 120-period Moving Average (weekly long-term trend line)
