Yesterday, the US dollar strengthened once again. Both EURUSD and GBPUSD dropped a bit. The GBPUSD even finished the day below 1.39. Today, the GBPUSD is falling even more and the EURUSD is showing mixed sentiment. From the data front, there will be many important releases today, such as ZEW economic sentiment in March in the Eurozone and retail sales and core retail sales in February in the US. Anyway, let’s start the analysis:
The EURUSD dropped a bit yesterday. The bulls successfully defended the S1 support level, but they weren’t strong enough to beat the EMA 200. In the end, the price finished the day between these levels. Today, the EURUSD is showing mixed sentiment. If the bulls take control over the market and successfully attack the EMA 200, the price might even reach the R1 resistance level. But if the bears show their strength once again, the price could drop below 1.19 and the S1.
The GBPUSD dropped a bit yesterday as well. The price finished the day below 1.39. Today it is falling even more. If the buyers don’t generate some serious appetite pretty soon, the price could even drop below 1.38. But if they do, the price might return near the EMA 77.