Yesterday the US dollar got some real strength. In consequence both EURUSD and GBPUSD dropped heavily. The GBPUSD even finished the session below 1.36. Today the EURUSD is slowly rising and the GBPUSD is showing mixed sentiment. From the data front, the CPI in the UK in December and building permits in the US, also in December, will be published. Anyway, let’s start the analysis:
The EURUSD dropped deeply yesterday. The price finished the session at the S3 support level, slightly below 1.133. Today, it is slowly rising, though. If the buyers continue generating sufficient demand, the price might rise above the Pivot Point and reach 1.136. But if the bears counterattack, the price could fall to 1.131.
The GBPUSD also dropped significantly yesterday. The price finished the session below 1.36. Today, it is showing mixed sentiment. If the buyers take control over the market, the price might rise above the EMA 77 and 1.362 today. But if the bears show their strength once again, the price could fall below 1.357.