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EURUSD and EURGBP Test Near Term Major Resistances

This morning we saw the release of the Eurozone Q3 GDP (QoQ and YoY), also the Eurozone CPI and Core CPI figures for October (YoY), all in line with expectations.

EURUSD has been oscillating in a downtrend channel since the beginning of October, due to the strengthening of the dollar and the ECB statement of potential extended stimulus measures.

Yet the price has held after testing the long term major support line at 1.0850. The range between 1.0850 and 1.0800 is the long term major support zone.

The daily Stochastic Oscillator is below 20, suggesting a rebound.
Yet the RSI indicator is still below 50, indicating the bullish momentum still remains weak.

The current price is testing the upper band of the downtrend channel, where the resistance level at 1.0900 converges. The price will likely pull back at this level.

The resistance level is at 1.0900, followed by 1.0950 and 1.1000.
The support line is at 1.0850, followed by 1.0825 and 1.0800.

Keep an eye on the US PCE and Core PCE figures (MoM and YoY) for September, the US Personal Spending and Personal Income (Sep), to be released at 12:30 GMT today. As well as the Chicago PMI figure for October, at 13:45 GMT. It will influence the strength of the dollar and the trend of EURUSD.

With better-than-expected figures, EURUSD will likely fall.
With lower-than-expected figures, EURUSD will likely rally and test the resistance level at 1.0900.


EURGBP has held above the downside short term uptrend line support, since the retracement on 18th October, where another support line at 0.8900 converges. This is providing a strong support.

Yet the current price is trading around the near term major resistance level at 0.9000. In addition, the price is nearing the long term major resistance zone, between 0.9060 – 0.9150. The bullish momentum is likely to be restrained at this level.

The 4 hourly Stochastic Oscillator is heading downwards from above, indicating a retracement.

The resistance level is at 0.9000, followed by 0.9060, 0.9100 and 0.9150.
The support line is at 0.8950, followed by 0.8900 and 0.8850.



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