- On Friday, EURUSD retested the 1.12000 level.
- On Friday, GBPUSD again found resistance around the 1.34300 area.
EURUSD Chart Analysis
On Friday, EURUSD retested the 1.12000 level. This time we couldn't hold on; Instead, we saw a pullback towards the 1.11400 level. In that area, the pair was again supported by the EMA200 moving average, which was our support for the last week. The pair is still in the bullish channel and for now there are no signs of a trend change.
On Monday we expect to see the start of a new bullish consolidation of the EURUSD above the 1.11800 level. After that, we will have the opportunity to test the 1.12000 level. It would be our third test in that area in the previous five days. This time we expect a push above and the formation of a new high. The highest possible targets are the 1.12200 and 1.12400 levels. We need EURUSD to fall below the 200 EMA and the 1.11400 level for a bearish outlook. With this step, we will form a new low and confirm the beginning of bearish oscillations. The lowest possible targets are the 1.11200 and 1.11000 levels.
GBPUSD Chart Analysis
On Friday, GBPUSD again found resistance around the 1.34300 area. From that area, the pair had to start a new decline to the support zone of 1.33725. We fell below the 50 EMA, which could add to the bearish pressure on Monday at the opening of the Asian session. By falling below 1.33600, we will form a new low compared to Friday and thus confirm that GBPUSD is under pressure and will continue its pullback.
The lowest possible targets are the 1.33400 and 1.33200 levels. At 1.33200, we will test the 200 EMA in hopes of reaching its bottom and stopping further decline. For a bullish option, GBPUSD must return above the 1.34000 level. With that move, we turn back to the bullish side and expect a retest of last week's resistance zone. This time we need a breakout and the formation of a new high to confirm the continuation of the bullish side. The highest possible targets are the 1.33600 and 1.33800 levels.
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