Yesterday both EURUSD and GBPUSD went down. Today both Forex pairs are falling even more. What can they do next? Let’s try to answer that question in an analysis:
Yesterday was a really volatile session. First the EURUSD rose significantly and tested the R1 resistance level. However, it dropped heavily in the afternoon and finished the session a little above the S1 support level and 1.051. Today the price is falling even more. It is already significantly below today’s S1 and 1.046. If the buyers don’t generate some serious appetite soon, the price could go down below 1.042 today. But if they do, the price might return above today’s S1.
The GBPUSD also went down significantly yesterday. The price finished the session slightly above 1.224. Today it is falling even more. Right now the bulls are trying to defend 1.22. If they do it successfully, the price might return above 1.224. But if they fail, the price could drop below 1.218.