On Friday, the US dollar got some strength. Both EURUSD and GBPUSD dropped a bit. The GBPUSD was a bit weaker and finished the day below the EMA 77. Surprisingly, during the first hours of the current week, both Forex pairs managed to rise. However, after that they started going down. What can they do next? Let’s try to answer that question in an analysis:
Friday’s session was quite interesting. First, the EURUSD dropped significantly and got really close to 1.19. However, in the afternoon it managed to rise and finished the day above 1.195. Today the price is falling once again. Right now it is getting close to the S1 support level. If the buyers don’t generate some serious appetite pretty soon, the price could drop below 1.19 today. But if they do, the price should return above the EMA 200.
The British pound also showed some weakness on Friday. First the price dropped heavily. However, in the afternoon the GBPUSD managed to rise and finished the day above 1.39. Today, during the first hours of the Asian trading session, the price was still rising. After that, it went down below 1.39. This morning it is rising once again, though. If the buyers continue generating sufficient demand, the price might even reach 1.40 today. But if the bears take control over the market once again, the price could fall below 1.39.