EURUSD and GBPUSD: EURUSD falls to a new yearly low

• Friday brings EURUSD to the lowest value in 2024 at 1.06817 level. 
• On Wednesday, there was a big drop in GBPUSD from 1.27000 to 1.25200 level.

EURUSD chart analysis

Friday brings EURUSD to the lowest value in 2024 at 1.06817 level. The pair started to retreat on Wednesday after the announcement of US inflation for the month of March. The data showed that inflation is higher than expected, delaying the interest rate change by the FED. On Wednesday, EURUSD retreated from 1.08650 to 1.07300 levels.

Then, on Thursday, we saw some consolidation and an attempt to recover, but it didn’t give results as we retreated to the 1.07000 level. During this morning’s Asian session, the pressure on EURUSD continued, and we saw a break below yesterday’s low and a drop to the 1.06810 level. The bearish impulse is very strong, and we could go even lower. Potential lower targets are 1.06700 and 1.06600 levels.

GBPUSD chart analysis

On Wednesday, there was a big drop in GBPUSD from 1.27000 to 1.25200 level. We spent Thursday in lateral consolidation and trying to recover. We only managed to move up to the 1.25700 level, where we encountered resistance. During this morning’s Asian session, the pair was maintained at 1.25600, but the EU session brings us new pressure on the pound. This brings us below yesterday’s low to a new weekly level of 1.25050.

If the current bearish momentum continues, we can expect a further pullback and drop to a new lower low. Potential lower targets are 1.24900 and 1.24800 levels. We need to go back up to the 1.25600 level for a bullish option. By moving above, we will be in a better position to initiate a more concrete recovery. Potential higher targets are 1.25800 and 1.26000 levels.