Yesterday, the EURUSD dropped significantly for the second day in a row. On the other hand, the GBPUSD showed mixed sentiment , but with pretty high volatility. Today, both currency pairs are showing mixed sentiment. From the data front, many important publications will be released today, such as CPI and core CPI in the Eurozone and ADP nonfarm employment change in the US. Anyway, let’s start the analysis:
The EURUSD dropped significantly once more. The price finished the day slightly above the S1 support level. Today it is showing mixed sentiment and the volatility is quite low. If the buyers are able to generate some serious appetite, the price might rise to the EMA 200 and the R1 resistance level. But if the bears take control over the market once again, the price could fall to the S1 and test 1.20.
GBPUSD showed mixed sentiment yesterday, but the session was really interesting. First the price went up and tested 1.37. Then it dropped heavily to 1.361. After that it rose once again and finished the day a little above 1.365. Today, the price is showing mixed sentiment as well. Right now the bulls are attacking the EMA 77. If they do it successfully, the price might rise even more and test 1.37 one more time. However, if they fail, the price could even go down near 1.36.