EURGBP and EURCHF: EURGBP drops to a new weekly low

EURGBP chart analysis

During this morning’s Asian session, the EURGBP tried to maintain above the 0.84250 level. Data on German inflation and British GDP were published at the start of the EU session. This caused the pair to drop to the 0.84206 level, forming a new weekly low there. In the rest of the day, we manage to stay in that zone before the start of the US session. The picture is still bad for the euro, and we could easily see a push down to a new low.

Potential lower targets are the 0.84150 and 0.84100 levels. For a bullish option, we need a positive consolidation above the 0.84300 level. There, we test the daily open price. If we manage to move above to the positive side, we can expect to trigger further recovery. Potential higher targets are the 0.84350 and 0.84400 levels. At 0.84400, it receives support from the EMA 50 moving average to continue to the bullish side.

EURCHF chart analysis

During this morning’s Asian trading session, EURCHF held above the 0.97400 level. We have resistance at 0.97500 and can’t manage to build momentum above to continue on the bullish side. Maybe the US session will bring new strength to the euro, and we will see a break above it. Potential higher targets are 0.97600 and 0.97700 levels. Last week’s high is at the 0.97556 level. 

We need a negative consolidation and a pullback of EURCHF below the 0.97400 level for a bearish option. With those steps, we would be moving away from the previous bullish consolidation. At 0.97300, the pair will test the EMA 50 moving average support. The impossibility to maintain even there will push us to a new daily low. Potential lower targets are 0.97200 and 0.97100 levels.

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