How High Can Euro And Sterling Go?
MaiMarFX | May 03, 2016 07:08AM ET
The U.S. dollar is becoming weaker and weaker, and traders are wondering how high euro and sterling might rise amid such dollar weakness. The euro broke above its crucial resistance level at 1.15, and we are now looking for higher price levels from where corrections may occur.
EUR/USD
A next hurdle could currently be at 1.1560 before the euro may extend its upside movement towards 1.1620. If the euro is even able to exceed that level, it could head towards 1.1715 in a next step. For the time being we expect one of these levels to act as a resistance and trigger some corrective movements. On the bottom side, the 1.1450 level could lend a short-term support to the currency pair. Below 1.1430, lower targets could be at 1.14 and 1.1375.
GBP/USD
The cable extended its gains towards 1.47, and bullish potential still seems far from being exhausted. A next bullish target could be at 1.4720, whereas a break above 1.4725 could send sterling even higher towards 1.4755 and 1.4810. Given the bullish bias, sterling bears should rather wait for prices below 1.4630 and 1.4575 to sell GBP towards lower targets.
The U.K. Manufacturing PMI is scheduled for release at 8:30 UTC and may support the upward trend.
Here are our daily signal alerts:
EUR/USD
Long at 1.1565 SL 25 TP 20, 50
Short at 1.1520 SL 25 TP 30-40
GBP/USD
Long at 1.4710 SL 25 TP 20, 70
Short at 1.4635 SL 25 TP 20, 40
We wish you good trades and many pips!
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