EURUSD and GBPUSD: The euro manages to hold above 1.06500
- Yesterday, EURUSD made a significant breakthrough above the 1.06500 level, rising to the 1.06920 level.
- During the Asian trading session, GBPUSD hovered around 1.20500 levels.
EURUSD chart analysis
Yesterday, EURUSD made a significant breakthrough above the 1.06500 level, rising to the 1.06920 level. During the Asian trading session, we see a pullback and descent to the 1.06380 level. The pair formed a new higher low and started a new bullish consolidation, so we are back above the 1.06500 level. We need a positive consolidation and a move up to the 1.07000 level for a bullish option.
Then we need to stay there and try to move above. This would form a new ten-day high. Potential higher targets are 1.07250 and 1.07500 levels. We need a negative consolidation and pullback to the 1.05750-1.06000 support zone for a bearish option. If we fail to get support there, the continuation of the bearish trend will be obvious. Potential lower targets are 1.05500 and 1.05000 levels.
GBPUSD chart analysis
During the Asian trading session, GBPUSD hovered around 1.20500 levels. As the European trading session began, the pound began to weaken and fall toward the 1.20000 level again. A drop below is expected, but we’ll probably wait until next year for that. Potential lower targets are 1.19500 and 1.19000 levels. We need a positive consolidation and a move above the 1.21000 level for a bullish option.
Then we would have to hold our own up there. With the continuation of positive consolidation, the pound could start a further recovery. Potential higher targets if we break above are 1.21500 and 1.22000 levels.