- Yesterday we saw the EUR/USD decline from 1.07950 to 1.07000.
- GBPUSD fell today to this week's lowest level at 1.25400.
EUR/USD chart analysis
Yesterday we saw the EUR/USD decline from 1.07950 to 1.07000. The reason for this decline is the increase in inflation in the United States, which led to the strength of the dollar. The data showed that monthly inflation rose by 0.3%, while expectations indicated 0.2%. During the Asian trading session, the pair moved in the range of 1.07025-1.07200. With the beginning of the EU session, the Euro weakened, and we saw a drop to the 1.06950 level.
We are still under bearish pressure and possible lower targets are 1.06900 and 1.06800. We need a positive consolidation and a return above the 1.07200 level for a bullish option. After that, we will have to hold above there if we plan to see a sustained recovery. Possible higher targets are 1.07300 and 1.07400 levels.
GBPUSD chart analysis
GBPUSD fell today to this week's lowest level at 1.25400. This morning's data on lower UK inflation had a negative impact on the pound. The pair was very close to testing last week's low at 1.25184. For now, we are holding above the daily low and recovering slightly to the 1.25520 level. We need continued positive consolidation to try to recover and erase some of the previous decline.
Possible higher targets are 1.25600 and 1.25800 levels. We need a new test of the 1.25400 support level for a bearish option. A drop below would lead to the formation of a new daily low thus extending the downward pressure. Possible lower targets are 1.25200 and 1.25000 levels.
