EUR/USD:
Finally the euro broke lower and has traded and exceed 1.3160 for 1.3140. The market does look under pressure at this stage and if we stage a break of 1.3140 we would expect further selling pressure with 1.3010/05 still the targeted area.
Obviously we have stages of support prior to this major one, but it would be a case of covering shorts prior above stated support levels, then re-selling a break below for the 1.3010/05 major support level.
Any bounce from 1.3140 leaves 1.3175/1.3225 exposed on the topside, but this would just give better levels to sell. Hold shorts on any rally and only reverse a break above 1.3290.
An immediate target on a break of 1.3140 is 1.3075....we may see a little short term bounce from here, but again, any bounce will give sellers a better opportunity to sell.
GBP/USD:
Cable came lower as expected and we have hit the first target of 1.6180. We still have 1.6140 as a nearby objective, but if short you may wish to cover at 1.6180 and see if we can bounce a little initially.
However, any bounce from current levels should be contained by 1.6220/25 and this area will once more give sellers a good opportunity to get back into the market. Sellers will hold unless we break 1.6255.
As stated we have support at 1.6180/1.6140. If we lose 1.6140 we would see further weakness ensue with 1.6085/65 the short term objective.
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We cover shorts in this area and await the next directional move.
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