Yesterday, the US dollar got some real strength. Both EURUSD and GBPUSD dropped heavily and the volatility was extreme. Moreover, they are still going down today. From the data front, all eyes will be on the nonfarm payrolls February release in the US, so the volatility in the afternoon should be very high. Anyway, let’s start the analysis.
Yesterday, the US dollar showed its strength. The EURUSD dropped heavily and finished the session significantly below the S2 support level. Today the price is still going down. Right now the bears are attacking the S1. If the buyers don’t generate some serious appetite at that level, the price could fall below 1.19. But if they do, the price might bounce to the Pivot Point and reach 1.20.
Yesterday was a very intense session with an extreme volatility. First, the GBPUSD went up strongly and tested 1.40. Then, in the afternoon, it dropped heavily and finished the day below 1.39. Today the price is still falling. If the buyers don’t generate some serious appetite pretty soon, the price could drop below 1.38. But if they do, the price might rise to the EMA 77 and 1.39.