Yesterday the EURUSD dropped deeply, but the GBPUSD showed mixed sentiment. Today both currency pairs are rising, though. From the data front, the CPI and core CPI in April in the US will be published. Anyway, let’s move on to the analysis:
The EURUSD dropped deeply yesterday. First, the price fell significantly below the S2 support level and 1.095. Then, at the start of the American trading session, it managed to rise. During the next hours the price was showing mixed sentiment. In consequence, the EURUSD finished the session exactly at the S2, slightly above 1.096.
However, it is rising today. The price is already above 1.098. If the buyers continue generating firm demand, the price might even reach the R1 resistance level, the EMA 200 and 1.10. But if the bears counterattack, the price could return below the Pivot Point and 1.097 today.
The GBPUSD was also volatile yesterday. First, during the Asian trading session, the price managed to rise above 1.263. Then, it started going down. In the afternoon, the price even dropped below 1.258. After that, at the beginning of the American trading session, it started rising. In consequence, the GBPUSD finished the day a little above the EMA 77 and 1.262.
Today, it is going up, though. If the buyers continue generating firm demand, the price might even rise above 1.265. But if the bears counterattack, the price could drop below the EMA 77 and 1.262 today.