Yesterday, the US dollar got some real strength. Both EURUSD and GBPUSD dropped heavily. The EURUSD finished the session below the S3 support level, a little above 1.17. Today, both Forex pairs are rising, though. From the data front, there will be many important releases today, such as the CPI in July in the UK and Eurozone, building permits in July in the US, and FOMC meeting minutes. Anyway, let’s start the analysis:
Yesterday was a totally bearish session. The EURUSD dropped heavily and finished the session below the S3 support level, a little above 1.17. However, the price is rising today. If the buyers continue generating firm demand, the price might even reach the R1 resistance level. But if the bears counterattack, the price could fall below 1.17.
The GBPUSD also dropped heavily yesterday. The price finished the session below 1.374. Today, it is rising slowly, though. If the buyers continue generating sufficient demand, the price might rise above the EMA 77 today. But if the bears counterattack, the price could fall to 1.37.