Yesterday both EURUSD and GBPUSD dropped heavily. Today both currency pairs are rising, though. From the data front, the U.S. Federal Open Market Committee (FOMC) minutes from the last meeting will be published. Anyway, let’s start the analysis:
EURUSD
Yesterday was a really bearish session. After falling deeply all day, the EURUSD finished the first session of the year significantly below the S3 support level, a little above 1.094. During today’s Asian trading session, the price managed to rise above 1.096. Then, at the beginning of the European trading session, it started falling. If the buyers don’t generate some serious appetite soon, the price could drop below 1.093 today. But if they do, the price might even go up above the Pivot Point and 1.099.
GBPUSD
The GBPUSD was even more volatile yesterday. First, during the early hours of the Asian trading session, the price dropped below 1.271. Then, it started rising. The price even went up above the EMA 77 and 1.275 at the beginning of the European trading session. After that, it started falling deeply. In consequence, the GBPUSD finished the day slightly below 1.262.
Today, the price is rising, though. It is already above 1.264. If the buyers continue generating firm demand, the price might go up above the EMA 77 and even reach 1.269 today. But if the bears counterattack, the price could drop to 1.261.
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