EURUSD and GBPUSD: Smaller gains 

• During the Asian trading session, the euro advanced against the US dollar.
• During the Asian trading session, the pound made smaller gains against the US dollar.
• German export growth accelerated more than expected in June, while imports grew at a slower pace, official data showed on Wednesday.

EURUSD chart analysis

During the Asian trading session, the euro advanced against the US dollar. The euro is currently trading at 1.01950, up 0.32% since the start of trading last night. We can say that we are teasing the 1.02000 level, and we hope to see a break above and the continued recovery of the euro. Moving above 1,02000, we find support in the MA20 and MA200 moving averages, while the MA50 is in the zone around 1.02200. Potential higher targets are 1.02500 and 1.03000 levels. We need a new negative consolidation and a fall of the euro below the 1.01500 level for a bearish option. After that, the pair should go down to 1.01000, last week’s support zone. If the euro continues to slide down and the dollar continues to strengthen, then we could revisit the psychological 1.00000 level.

GBPUSD chart analysis

During the Asian trading session, the pound made smaller gains against the US dollar. Our obstacle is still the 1.22000 level, and the pair still holds slightly below. We are in a pullback for the second day in a row after Monday’s attempt to climb above the 1.23000 level. For now, the pound has formed a new lower low and a new lower high. Based on that, we could see a continuation to the 1.21000 support level. Additional support at that level is the MA200 moving average. A break below the pound would send us into a longer-term bearish trend. We need a positive consolidation and growth above the 1.23000 level for a bullish option. If we stayed above, we would have a chance to continue on the bullish side. Potential higher targets are 1.22500 and 1.23000 levels.

Market overview

German export growth accelerated more than expected in June, while imports grew at a slower pace, official data showed on Wednesday. Exports in June increased by 4.5% compared to the previous month, Destatis reported. The increase in shipments exceeded economists’ forecast of 1.0% and also the revised 1.3% growth from May. Meanwhile, import growth eased more than expected to 0.2% from a revised 3.2% in May. Economists forecast a 1.3% increase in imports. As a result, the trade surplus increased to 6.4 billion euros.