05/27 - EUR/USD's key retracement & trendline remain intact

Guided by bullish 4-hourly diverging studies, the EUR/USD was able to dodge a major bullet overnight. Euro bears got dangerously close to testing the May 19th low of 1.2139, which is very near the key 50% retracement level of the entire bull market move from 2000 to 2008. With only one day left in the month of May, it looks like a key monthly trendline that extends off the all-time lows will also remain intact. The next hurdle for the EUR/USD's recovery comes in form of the 14-day MA (now at 1.2442). Above this pivot, along with a bullish breakout of weekly bear RSI trendlines (9 & 14-periods) would indicate that a sustainable recovery is in place.

05/20 - GBP/USD maintains key Fib support

The GBP/USD has maintained support at a key Fibonacci retracement level on a closing basis for the fourth consecutive day (1.4294 = 78.6% of the rebound off 1.3500). Hourly, 4-hourly and daily bullish MACD divergence hint at an overdue correction. A break above daily RSI trendline resistance should trigger a corrective rebound towards the resistant 10-day MA (now at 1.4619). A daily close below 1.4294 or a sustained loss of the 1.4238 level, suggests that market bears remain in firm control and would refocus the 1.41 handle initially.