EURUSD and GBPUSD: Slow Down the Bearish Trend

• During the Asian trading session, the euro managed to stop its decline at the 0.96600 level.
• The pound manages to slow down the bearish trend of the last three days and finds support in the 1.09200-1.01000 zone.
• Britain’s unemployment rate unexpectedly fell to its lowest rate since 1974.

EURUSD chart analysis

During the Asian trading session, the euro managed to stop its decline at the 0.96600 level. In the previous four hours, we saw a small recovery, and if we manage to get better support here, then we could also see a recovery of the euro. We need a positive consolidation and a return above the 0.97000 level for a bullish option. After that, we could see a recovery of the euro to the 0.97600 level at the 50.0% Fibonacci level. Potential higher targets are 0.98000 and 0.98500 levels.

We need a continuation of the negative consolidation and a drop to the 0.96500 level for a bearish option. This could be a very important support zone and a turning point that could direct the trend in the long term. A break below would likely take us down to the 0.96000 and 0.95500 levels, which would put new pressure on the all-time low.

GBPUSD chart analysis

Like the EURUSD, the pound manages to slow down the bearish trend of the last three days and finds support in the 1.09200-1.01000 zone. The pair is almost moving sideways in the last 24 hours, and if we manage to climb above the 1.11000 level, we could see a pound recovery. For a bullish option, we need a new positive consolidation to the first next resistance at 1.12000 at the 38.2% Fibonacci level. Potential higher targets below are 1.13000 and 1.14000 levels. For a bearish option, we need a continuation of the negative consolidation and a further fall of the pound to the 1.09000 level at the 50.0% Fibonacci level. Potential lower targets are 1.08000 and 1.07000 levels.

Market Overview

Britain’s unemployment rate unexpectedly fell to its lowest rate since 1974. The Office for National Statistics reported that the unemployment rate fell to 3.5 % months in August from 3.6 % in July.