EURUSD and GBPUSD: Attempt by Euro To Climb Failed Yesterday

• Another attempt by the euro to climb to the 0.99000 level failed yesterday
• During the Asian trading session, the pound continued to retreat below the 1.12000 level.

EURUSD chart analysis

Another attempt by the euro to climb to the 0.99000 level failed yesterday. Yesterday’s bullish impulse was stopped at 0.98500, and since then, we have been leading the pullback of the European currency. The euro quickly fell below the 0.98000 level, which continued during the Asian trading session. 

In the European trading session, a new daily minimum at the 0.97600 level. We need a continuation of the negative consolidation and a break below the 0.97500 support level for a bearish option. After that, we could expect the pair to go down to 0.96500-0.97000, the next lower support zone. 

We need a positive consolidation and a move above the 0.98000 level for a bullish option. Then we would approach the previous resistance zone of 0.98200-0.98700. After that, we need to try to stay in that zone and continue with the recovery of the euro with the new bullish impulse. A potential higher target is the 0.99000 level.

GBPUSD chart analysis

During the Asian trading session, the pound continued to retreat below the 1.12000 level. We are now looking at potential support at the 1.11000 level. The current bearish pressure is too strong for the vulnerable pound, and we will likely see a further pullback over the next week. 

We need further negative consolidation to the previous low at the 1.10500 level to continue the bearish option. If we fail to find support there, the pound will continue to fall. Potential lower targets are 1.10000 and 1.09000 levels. We need a positive consolidation and a return above the 1.12000 level for a bullish option. After that, we need to stay there and try to continue the recovery. Potential higher targets are 1.13000 and 1.14000 levels.

Market overview

The fall in UK retail sales unexpectedly deepened in September as the rising cost of living weighed on spending volumes. Retail sales fell 1.4% month-on-month, following a 1.7% drop in August, the Office for National Statistics said on Friday. On an annual basis, retail sales declined to 6.9% in September from 5.6% in August.