- Both the Euro and GB Pound have made new multi-month highs against the US Dollar through mid-July.
- This activity reinforces bullish signals already sent back in Q2 for both EURUSD and GBPUSD.
- Risk into July is for a EURUSD move towards 1.1714, maybe closer to psychological/ option target at 1.2000
- For GBPUSD the bias is up for the 1.34/1.35 area.
EURUSD – Bullish threat
A high-level consolidation Monday to match the 1.1490 peak, then to push through this level and psychological/option target at 1.1500 overnight, reinforcing the Friday rebound and maintaining bullish pressures into Tuesday.
Moreover, we still see a bullish intermediate-term outlook into July.
For Today:
l We see an upside bias through 1.1537 for 1.1555; break here aims for a key peak at 1.1616.
l But below 1.1473 opens risk down to 1.1409.
Intermediate-term Outlook – Upside Risks:
l Whilst above 1.1107, we see a positive tone with the bullish threat to 1.1366.
l Above here targets 1.1428/47, 1.1616 and 1.1714.
What Changes This? Below 1.1107 signals a neutral tone, only shifting negative below 1.0837.
Daily EURUSD Chart
GBPUSD – Bullish trend re-energised
Despite a setback just below initial support at 1.3052 we contingency upside pressures from the Friday surging rally through the May multi-month peak at 1.3048, re-energising the intermediate term bullish view and again aiming higher into Tuesday.
For Today:
l We see an upside bias up to and through 1.3114 and a key high from September 2015 at 1.3121; break here aims for 1.3165.
l But only below 1.3048 opens risk down to 1.2998, maybe 1.2947.
Intermediate-term Outlook – Upside Risks:
l We see a positive tone with the bullish threat to 1.3121.
l Above here targets the 1.3455/3534 area.
What Changes This? Below 1.2513 signals a neutral tone, only shifting negative below 1.2363.
Daily GBPUSD Chart
