During the Asian trading session, the pair EURUSD was calm and moved slightly above the 1.02000 level. During the European session, the euro gained strength and slowly began to dominate against the dollar. We could see a continuation of the bullish trend to the 1.02500 resistance zone by the end of the day. Yesterday we tried to climb above, but without success, because a retreat followed. We need a stronger impulse to move the center of gravity above the 1.02500 level for a stronger bullish option. After that, we need a positive consolidation to continue to the 1.03000 higher resistance zone. For a bearish option, we need a negative consolidation and pullback of the euro below the 1.02000 zone. After that, we can expect an increase in bearish pressure and a further decline in EURUSD. Potential lower targets are 1.01500 and 1.01000 levels.
GBPUSD chart analysis
During the Asian trading session, the pound managed to strengthen a little against the dollar and moved from the initial 1.20600 to the 1.21000 level. For now, our resistance is at the 1.21000 level because the pound fails to make a more specific break above it. The pair is in a seven-day bearish trend, but it managed not to form a lower low in the last two days. Conversely, the seven-day minimum was moved from 1.20000 to 1.20600 level. We need a positive consolidation and a return above the 1.21000 level for a bullish option. After that, the pound would have a better chance of continuing its recovery toward higher levels. The MA200 moving average is in the zone around 1.21500 levels. Potential higher targets are 1.21500 and 1.22000 levels. We need a negative consolidation and a pullback below the 1.20600 support zone for a bearish option. The fall of the pound below allows us to drop to the 1.20000 level, last week’s minimum.
Market overview
Consumer price growth in Germany
Consumer price inflation in Germany slowed as expected in July but remained high on an annual basis; final Destatis data showed on Wednesday. Consumer price inflation fell to 7.5% from 7.6% in June. CPI data from American soil is expected later. Expectations are that we will see a slowdown in inflation and softer data.
