EURUSD and GBPUSD: Once Again Coming Back

• Today’s EURUSD low is at the 0.99500 level.
• The pound recovery stopped at the 1.15800 level yesterday, after which we see a pullback.
• From January to July, the export of goods increased by 17.9%. At the same time, imports increased by 43.4% due to high energy costs.

EURUSD chart analysis

Yesterday, the Euro failed to recover above the 1.00000 level, and we saw another pullback below. Today’s low is at the 0.99500 level, where we find immediate support. The Euro is once again coming back to the 1.00000 level and trying to break through that barrier and move away from the critical zone. The dollar index is stable, and there are no indications of a potential fall. For a bullish option, we need to move above and stay there. After that, a new bullish consolidation could happen, which would move us towards the 1.00500 level. A potential higher target is the 1.01000 level. We need negative consolidation, retest, and break below the 0.99500 level for the bearish option. After that, the pair could continue to pull back to the next lower support zone. Potential lower targets are 0.99000 and 0.98500 levels.

GBPUSD chart analysis

The pound recovery stopped at the 1.15800 level yesterday, after which we see a pullback to support at the 1.15000 level. A new push to this level could create a break below and push the pound even lower. For a bearish option, we need a continuation of the negative consolidation. Potential lower support targets are 1.14500 and 1.14000 levels. If we find support here, pair b could start a new bullish recovery. With a positive consolidation, we must first climb to the 1.15500 level. Additional resistances at that point are in the MA50 and MA200 moving averages. A break above could push the foot to the 1.16000 resistance level. And potential higher targets are 1.16500 and 1.17000 levels.

Market Overview

The trade deficit of the Eurozone increased in July to the highest level since 1999, data published by Eurostat showed on Thursday. The trade deficit increased to 40.3 billion euros in July from 32.2 billion euros in June and the trade balance showed a deficit of 34.0 billion euros compared to a surplus of 20.7 billion euros in the same period last year. From January to July, the export of goods increased by 17.9%. At the same time, imports increased by 43.4% due to high energy costs.