Yesterday, the US dollar managed to get some strength. Both EURUSD and GBPUSD went down. The EURUSD finished the session slightly below the S1 support level and the GBPUSD finished the day a little above the EMA 77. Today, the EURUSD is showing mixed sentiment and the GBPUSD is rising. From the data front, the European Central Bank is to publish a statement on monetary policy today, which is expected to have little surprise for the market. Anyway, let’s start the analysis:
The EURUSD dropped significantly yesterday. It finished the day slightly below the S1 support level. After today’s Asian trading session, the price is even lower. If the buyers don’t generate some serious appetite soon, the price could even drop to 1.21. But if they do, the price might reach the EMA 200 today. After the ECB monetary policy statement the volatility will probably strongly increase.
The GBPUSD also dropped a bit yesterday. However, the bulls successfully defended the EMA 77 and the price finished the day a little above it. During today’s Asian trading session the EMA 77 was also defended and this morning the price started rising. If the buyers continue generating sufficient demand, the price might test 1.37 today. But if the bears counterattack and manage to beat the EMA 77, the price could drop to 1.36.