- The beginning of this week brought us sideways consolidation for EURUSD in the 1.07600-1.07800 range.
- The highest price this week for the British pound against the US dollar was formed yesterday at the level of 1.26686.
EUR/USD chart analysis
The beginning of this week brought us sideways consolidation for EURUSD in the 1.07600-1.07800 range. Monday was a holiday in the United States, so we had more volatility on Tuesday, which the Euro benefited from. With the rising wave, we broke the previous resistance 1.07800 and rose to the level of 1.08390. At this level, we form a two-week high and stop there.
After that, the downtrend started, which took us today below the 1.08000 level. We are now in the process of searching for new support and we expect EURUSD to fall to 1.07800 and test the support at the EMA200. A break below would further jeopardize the recovery, and potential lower targets are the 1.07600 and 1.07500 levels. By obtaining support at 1.08000, the pair may start the previous upward trend.
GBPUSD chart analysis
The highest level this week for the pound sterling against the US dollar was formed yesterday at 1.26686. After that, the British pound takes a defensive stance and begins a bearish consolidation from this level. This takes us to the support at 1.26000. We have additional support for the bullish option in the EMA200, and we need to break above 1.26400 in order to get concrete confirmation. Possible higher targets are 1.26500 and 1.26600 levels.
For the bearish option, the pair will have to pull back below 1.26000 and the EMA200. Therefore, we may move to the downside and be under pressure to test the support from the beginning of the week. A new test of the 1.25800 area and a longer stay there may break below and form a new weekly low. Possible lower targets are 1.25700 and 1.25600 levels.
