- Pair EURUSD formed a new six-month high yesterday at the 1.06950 level.
- Similar to the Euro, GBPUSD is making a pullback from yesterday’s high to the 1.24500 level.
EURUSD chart analysis
Pair EURUSD formed a new six-month high yesterday at the 1.06950 level. The bullish trend stopped, and the euro started a pullback. This morning we broke down to the 1.06000 level and are now trying to find support. The dollar index is rising today and could further bring down the EURUSD. For a bearish option, we need a negative consolidation and a break below the 1.06000 level. Potential lower targets are 1.05500 and 1.05000 levels.
Today’s pressure on the euro is building up to the later ECB interest rate report. The market expects to raise the interest rate from 2.00% to 2.50%. If the report coincides with the forecasts, we could expect the euro to fall even below the 1.05000 level. For a bullish option, we need a positive consolidation and a return above the 1.06500 level. Then we must maintain up there and continue the recovery with the next bullish impulse. Potential higher targets are 1.07000 and 1.07500 levels.
GBPUSD chart analysis
Similar to the Euro, GBPUSD is making a pullback from yesterday’s high to the 1.24500 level. During the Asian trading session, the pound fell below the 1.24000 level and stopped at the 1.23000 level. After that, we see a minor recovery to 1.23500, and we are currently consolidating just below that level. Today’s key news for the pound is the BOE’s future interest rate report. Expectations are that the Bank of England will increase the interest rate by 0.50%, from 3.00% to 3.50%.
For a bearish option, we need a continuation of the negative consolidation and a new pullback of the pound below the 1.23000 level. Then we need to hold down there if we want to see a further drop in GBPUSD. Potential lower targets are 1.22500 and 1.22000 levels. For a bullish option, we need to return to the previous resistance zone and try to move above the 1.24500 level.
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