Yesterday both EURUSD and GBPUSD dropped significantly. However, both currency pairs are rising today. What can they do next? Let’s try to answer that question in an analysis:
The EURUSD dropped significantly yesterday. The price even fell below 1.071 in the afternoon. However, it managed to rise a bit in the evening. In consequence, the EURUSD finished the session a little above the S1 support level, slightly below 1.073.
During today’s Asian trading session, the price rose above 1.074. Then, it dropped below the Pivot Point in the morning. However, at the beginning of today’s European trading session, the price went up above 1.074 once again. After that, it fell one more time, though. Right now the bulls are trying to defend the Pivot Point. If they do it successfully, the price might bounce and even reach 1.075 and the R1 resistance level today. But if they fail, the price could drop to 1.071.
The GBPUSD was really volatile yesterday. First, during the Asian trading session, the price dropped below 1.234. Then it started rising in the morning. The price even went up above the EMA 77 at noon. After that, it started falling deeply, though. The price even dropped below 1.231 in the early evening. During the last hours of the day, it managed to rise a bit, though. In consequence ,the GBPUSD finished the session a little above 1.232.
Today, the price is rising significantly. It is already above the EMA 77 and 1.235. If the buyers continue generating firm demand, the price might even reach 1.238 today. But if the bears counterattack, the price could drop to 1.232.