EURUSD and GBPUSD: Euro in retreat against the dollar

• During the Asian trading session, EURUSD continues to retreat from yesterday’s high at 1.09000.
• During the Asian session, the pound was maintained at around 1.23500 levels.

EURUSD chart analysis

During the Asian trading session, EURUSD continues to retreat from yesterday’s high at 1.09000. The support at 1.08500 was broken, and now we continue towards the 1.08000 level. If we were to go down to the 1.07500 level, we would return to last week’s movement zone. The bigger picture tells us that we have been moving further in the ascending channel since November.

We need to get back above the 1.08500 level for a bullish option. This would form a new bottom from which we could expect continued recovery. The next price target is again 1.09000, and a break above it would make us more concretely return to the bullish side. A potential higher target is the 1.09500 level.

GBPUSD chart analysis

During the Asian session, the pound was maintained at around 1.23500 levels. Now we see a breakout below, and we are already at the 1.23100 level. We are very close to testing possible support at the 1.23000 level. If a break below occurs, we will open up space for the next low at the 1.22500 level. Uncertainty at that level could lead to a deeper withdrawal of the pound.

We need a positive consolidation and a return above the 1.23500 level for a bullish option. Then it is necessary to hold on there and start a further recovery of the pound with a new bullish impulse. Potential higher targets are 1.24000 and 1.24500 levels.