EURUSD and GBPUSD: The euro slips below the 1.08000 level
- Pair EURUSD was in a strong bearish trend yesterday.
- The pound fell below 1.24000 yesterday for the first time in the previous three weeks.
EURUSD chart analysis
Pair EURUSD was in a strong bearish trend yesterday. The euro failed to hold above the 1.08000 level due to a surge in the strong dollar. This led to the formation of a new lower low at the 1.07590 level. During the Asian session, the pair manages to consolidate at that level, and now we see a slight recovery to the 1.08000 level. We are struggling to climb above for now, and evro was pulled back to support at 1.07800.
We need further positive consolidation and a break above 1.08000 for a bullish option. Then we need to hold ourselves up there before moving on. Potential higher targets are 1.08200 and 1.08400 levels. This morning we had news from the EU market about the German PPI index, which measures the average prices of products in a fixed consumer basket at the production level. The data showed that the index rose by 0.3%. The news was assessed as positive and could positively affect the euro and its growth.
GBPUSD chart analysis
The pound fell below 1.24000 yesterday for the first time in the previous three weeks. During the Asian trading session, the pair GBPUSD managed to maintain and return above the 1.24000 level. At the beginning of the EU session, we see a bullish impulse up to 1.24280 levels. For a bullish option, we need a continuation of positive consolidation and a return above the 1.24500 level.
That way, we would move out of the uncomfortable zone. Then it is necessary to maintain up there and to start a further recovery with a new bullish impulse. Potential higher targets are 1.24750 and 1.25000 levels. We need a negative consolidation and a new pullback below the 1.24000 level for a bearish option. Potential lower targets are 1.23800 and 1.23600 levels.
