EURGBP and EURCHF: Euro retreated to new lows this morning

• EURGBP retreated to a new weekly low at 0.85210 levels on Wednesday morning.
• During the Asian trading session EURCHF encounters resistance at the 0.97200 level. 

EURGBP chart analysis

EURGBP retreated to a new weekly low at 0.85210 levels on Wednesday morning. We got support at that level and soon followed the initiation of bullish consolidation, which took us to the 0.85723 level by the end of the day. During this morning’s Asian trading session, the pair is under slight bearish pressure and we see a pullback to the 0.85600 level. If the pressure on the euro continues, the pair could slide to a new daily low.

Potential lower targets are 0.85550 and 0.85500 levels. Additional major support for EURGBP will be in the EMA200 moving average at the 0.85550 level. We need a positive consolidation and a return above the 0.85700 level for a bullish option. This brings us back to the testing zone of the weekly high. With the new momentum, we have the opportunity to climb to a new weekly high. Potential higher targets are 0.85750 and 0.85800 levels.

EURCHF chart analysis

During the Asian trading session EURCHF encounters resistance at the 0.97200 level. After that, with the start of the EU session, the pair begins to retreat down to the 0.97000 level. A bearish consolidation has started and we can expect a further pullback towards a new daily low. Potential lower targets are 0.96900 and 0.96800 levels.

For a bullish option, EURCHF must return above the 0.97100 level and the EMA50 moving average. After that, with a bullish impulse, we return to testing the previous resistance zone around the 0.97200 level. If we manage to hold on there, we will have a new opportunity to initiate further positive consolidation and recovery to the bullish side. Potential higher targets are 0.97300 and 0.97400 levels.