EURUSD chart analysis

During the Asian trading session, EURUSD moved in the 1.09400-1.09700 range. The pair is slowly progressing, and we are close to the upper level. Now, we expect to see a break above and the formation of a new daily high. After that, the euro could continue up to last week’s resistance zone. The positive thing is that we would get the support of the EMA50, and thus, the pressure on the euro would be much less. Potential higher targets are 1.09800 and 1.09900 levels.

We need a negative consolidation to support a bearish option at the 1.09500 level. Pulling below would force us to move to the bearish side. The next support is at the 1.09400 level, and there, we will test the support from Friday. The impossibility of holding on there will lead to a continuation of the decline and an increase in bearish momentum. Potential lower targets are 1.09300 and 1.09200 levels.

(Click on image to enlarge)

GBPUSD chart analysis

During the Asian trading session, GBPUSD moved in the 1.27300-1.27650 range. We see a slight recovery after Friday’s pullback to the 1.27200 level. The pair remains above support in the EMA50 moving average. Last week, we successfully held above the EMA50 and expect to see a continuation in the same direction this week. The first next bullish target is the 1.27860 level, last week’s resistance.

Potential higher targets are 1.28000 and 1.28200 levels. For a bearish option, we need to go back to the EMA50 and 1.27200 levels again. Then, a breakout below and the formation of a new weekly low is needed. That would be the first sign of a weak pound and increasing bearish momentum. Potential lower targets are 1.27000 and 1.26800 levels.

(Click on image to enlarge)

More By This Author: