EURUSD and GBPUSD: Euro falls to 1.06000 level

• During the Asian trading session, EURUSD held above the 1.06000 level.
• During the Asian trading session, GBPUSD consolidated around the 1.20500 level. 

EURUSD chart analysis

During the Asian trading session, EURUSD held above the 1.06000 level. At the beginning of the European session, there was instability, and the pair fell below that support and is now at the 1.05950 level. For now, we have stopped, and the euro is currently calm. We COULD expect to see a short-term sideways movement before the next impulse.

We need a new positive consolidation and a move above the 1.06250 level for a bullish option. After that, we could expect EURUSD to advance to 1.06500 and make a possible break above. Today’s news about inflation in the EU zone showed that it fell from 9.2% to 8.6%, in line with forecasts. Inflation is still at a high level, and it will take a long time to fall within the planned framework of 2.0%.

GBPUSD chart analysis

During the Asian trading session, GBPUSD consolidated around the 1.20500 level. Followed by a breakout below, the pair moved to 1.20200 levels. It is increasingly likely that we will test 1.20000 soon and try to find support there. A drop of the pound below that level could take us down to last week’s low at the 1.19000 level. GBPUSD would enter a longer-term bearish trend if we fell below that level.

We need a positive consolidation and a return to the 1.21000 level for a bullish option. Above, we would have a better position and chance to climb to 1.21500 and break above. Only after that would we move to a positive side so that we can continue the bullish option.