EURUSD and GBPUSD: New Support and Targets for Friday

EURUSD chart analysis

On Thursday, EURUSD retreated to 1.10084 levels to a new weekly low. A strong dollar is putting pressure on the euro all this week. During this morning’s Asian trading session, the movement took place in the 1.10250-1.10400 range. We have a slight hint that we could see the initiation of bullish consolidation as the dollar has fallen into a resistance zone. Potential higher targets are 1.10600 and 1.10800 levels.

In the 1.10800 zone, we encounter the EMA 200 moving average again, which was an obstacle for us to return to the bullish side. For a bearish option, we need a negative consolidation and pullback down to the 1.10000 level. With that step, we hint at a further retreat and the formation of a new weekly low. Potential lower targets are 1.09800 and 1.09600 levels.

GBPUSD chart analysis

Yesterday GBPUSD fell to 1.30920 to a new weekly low. A strong bearish consolidation since the start of the week brought this pair down by over 300 pips or 2.45%. During this morning’s Asian trading session, GBPUSD finally stopped the pullback and started a recovery. In the EU session, we see the formation of a daily high at the 1.31500 level. Bullish momentum is building and we should see a further rally by the end of the day.

Potential higher targets are 1.32000 and 1.32500 levels. Additional support is found in the EMA 50 moving average by crossing above 1.32000. For a bearish option, GBPUSD would have to first drop below the daily open level of 1.31235. With that step, we move to the bearish side. Potential lower targets are 1.31000 and 1.30500 levels.

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