EURGBP

After a brief pause at the 0.8400 level, which was a mild breach of a down trend line, price continued its upward momentum. As we can see by the chart below EURGBP got as high as 0.8600 a level not seen since August 2013, moreover the chart shows a slight rejection of a down trend line from 2009. This could be a quite important test as this could be the third test of the line, should this trend continue we may see a pull back from these levels. However on the flip side, if this sterling weakness continues we may see a breach of this trend suggesting further higher prices. This being said, resistance would be faced at the 0.8800 level which would coincide with 2013s swing highs. Should the longer term trend hold true and we see a pullback short term support may be witnessed at 0.8400 respectively then 0.8200 which would be a test of the recent uptrend from Novembers 2015 lows. To add to the potential bearish scenario the RSI is suggesting this market is overbought, however with the aftermath of the Brexit vote still looming potential sterling weakeness could still prevail due to the uncertainty of the UKs future.

eurgbp_july8

DAX

Since my last post the DAX failed to get above the 9816 the 50% retracement level of the brexit move. The resistance held true and saw prices fall back to the 9300 where it as found short term support.

At present price activity has been rather passive, as price returned to a previous support zone, what we await is the nonfarm payrolls , which could change the dynamics of the market.

In addition should this level hold as support resistance could faced back at the 9816 level.

dax_july8