Yesterday, both EURUSD and GBPUSD went up. Today, both currency pairs are showing mixed sentiment. However the volatility is pretty low and nothing really happened during the Asian trading session. From the data front, the February services PMI and markit composite PMI will be published, first in the Eurozone, then in the UK and the US. Anyway, let’s start the analysis:
The EURUSD was really interesting yesterday. First the price dropped below 1.20, then it strongly went up and tested the R1 resistance level and the EMA 200. In the end, it finished the day a little below those levels. During today’s Asian trading session, nothing really happened. This morning the price tested 1.21, but then it dropped below the EMA 200 once again. If the buyers are able to take control over the market, the price might reach the R1 today. But if the bears show their strength, the price could fall below the S1 support level and test 1.20.
The GBPUSD was similar to the EURUSD yesterday. First the price dropped significantly, then it strongly went up and finished the day above 1.395. Today, the volatility is pretty low, but the price is rising a bit. If the buyers continue generating sufficient demand, the price might rise above 1.40 today. But if the bears take control over the market, the price could fall below 1.39 once again.