EURUSD and GBPUSD: Euro drops to 1.07000 support level

• Yesterday we saw the formation of a new lower low at the 1.07066 level. 
• The pound fell yesterday to a new low for this month at the 1.23070 level.

EURUSD chart analysis

Yesterday we saw the formation of a new lower low at the 1.07066 level. EURUSD manages to consolidate at that level and recover during the Asian session to the 1.07400 level. We currently have resistance at that level, and the pair is pulling back to the 1.07300 support level.

Here we could now form a higher low from which to start the continuation of the recovery. Potential higher targets are 1.07500 and 1.07600 levels. Looking at the technical indicators, we have support in the Kijun and Kama lines, and the main target is the EMA50 at the 1.08000 level. With the breakout below, we continue the retreat to a new lower low.

GBPUSD chart analysis

The pound fell yesterday to a new low for this month at the 1.23070 level. We can say that we tested the 1.23000 level. During the Asian trading session, GBPUSD continued to recover and climbed to 1.23600 levels. We now have a smaller hold in that zone and need a positive consolidation to continue on the bullish side.

Potential higher targets are 1.23800 and 1.24000 levels. In the area around the 1.24000 level, we encounter a possible higher resistance in the EMA50 moving average.