Yesterday the US dollar showed real strength. In consequence, both EURUSD and GBPUSD dropped deeply. Today the GBPUSD is going down even more, but the EURUD started rising. What can they do next? Let’s try to answer that question in an analysis:
The EURUSD dropped deeply yesterday. The price finished the session significantly below the S2 support level, slightly above 1.008. During the first hours of today’s Asian trading session the price went down even more, but in the morning it started rising. Right now it is above 1.009. If the buyers continue generating sufficient demand, the price might go up above 1.011 today. But if the bears counterattack, the price could fall below 1.007.
The GBPUSD also dropped heavily yesterday. The price finished the session slightly below 1.193. Today it is going down even more. If the buyers don’t generate some serious appetite soon, the price could fall below 1.189 today. But if they do, the price might rise above 1.193.