Support and Resistance Levels
Somewhere in my mind, I had this thought that I already posted the support and resistance levels this week. But we haven´t posted an update about these levels in the last two days. There have been quite a few changes since last Friday, so I think it´s time we have a look at them.
EUR/USD – This forex pair started its slide on Monday morning and it hasn´t stopped for more than two days. The 20 moving average (MA) on the H1 forex chart has followed the price closely in a straight line, which makes it look like a trend line, as you can see on the chart below but. So, that´s the first resistance level at 1.1050-60. Above there comes Friday´s low at 1.11, followed by 1.12 which where the 200 MA stands.
Considering the gains that this pair has made in the last FED appearances, we have to focus more on the downside today, because a couple of FED members are speaking later today. 1.10 is obviously a big support level for this forex pair. There aren´t many technical indicators on the downside, but 1.09 and 1.08 are bound to provides some sort of resistance, because they have done so before. If we hear a few hawkish comments from Dudley, then we might se these support levels today.
GBP/USD – The beast has been out of the cage since Friday when the crash happened. The indicators are all over the place as they tend to be when such moves happen, but at least the price has formed some mild support levels. The first one comes at 1.2200-10 where the 20 MA stands on the H1 forex chart, which was the low of the swing move a couple of hours ago. Below there comes yesterday´s low at 1.22, of course 1.20 and Friday´s low which on my chart comes at 1.1811.
I don´t know what the low on your chart is, because the brokers were offered different bid prices by their live feed providers during that moment. Anyway, the first level on the upside comes at the 50 MA around 1.23. That´s followed by the 100 MA at 1.24 and then comes the swing high after Friday´s crash at 1.2460-70.
These are the levels to watch in these two major forex pairs. In the case of GBP/USD, you must take them with a pinch of salt and not bet your house on them, considering the moves we have seen recently.
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