EURUSD and GBPUSD: The Euro is back above 1.07000
- EURUSD formed a new higher high yesterday at the 1.07486 level.
- Pair GBPUSD tested the 1.22000 level once again yesterday.
EURUSD chart analysis
EURUSD formed a new higher high yesterday at the 1.07486 level. After the check, we see a stoppage of growth and a pullback from the maximum. During the Asian trading session, the pair continues to slide, leading to a drop below the 1.07000 level. This morning’s low was at the 1.06800 level, then the euro consolidated and rose again above the 1.07000 level.
We need a positive consolidation and a return to the resistance zone around the 1.07500 level for a bullish option. A break above and staying up would greatly increase the chances that we could see further EURUSD growth. We need a negative consolidation and a retest of support at the 1.06800 level for a bearish option. EURUSD falling below could take us to the next support zone around the 1.06500 level.
GBPUSD chart analysis
Pair GBPUSD tested the 1.22000 level once again yesterday. After this, we see a pullback to the 1.21500 level, and GBPUSD stayed at that level during the Asian trading session. For a bullish option, we need a new positive consolidation and a return to the resistance zone around 1.22000.
Then we need a break above and hold above in order to trigger a continuation of the recovery with the next impulse. A potential higher target is the 1.22500 level. We need an inactive consolidation and a drop below the 1.21500 level for a bearish option. After that, we could expect to see a drop to the 1.21000 level. A break below it would likely send GBPUSD down to a new test of the 1.20000 support level.