Yesterday, the EURUSD showed extreme volatility. First it went up significantly, then it dropped heavily. On the other hand, the GBPUSD showed mixed sentiment. Today the EURUSD is still going down and the GBPUSD is showing mixed sentiment. From the data front, many key reports will be published today. The most important are probably the minutes from the European Central Bank and Federal Reserve meetings. They should help to nail down the path of economic recovery and clarify plans of the central banks to maintain loose monetary policy. Anyway, let’s start the analysis:
That was a really crazy session for the EURUSD yesterday. The volatility was just extreme. First the price rose above the R2 resistance level. Then it dropped below the S2 support level and finished the day there. Today it is going down even more. If the bulls don’t generate some serious appetite pretty soon, the price could fall to the 1.205. But if they do, the price might rise to the EMA 200 and the Pivot Point.
The GBPUSD showed mixed sentiment yesterday. The price finished the day slightly below the EMA 77, but still above 1.39. Today it is showing mixed sentiment as well. The bulls had already tested the EMA 77 twice, but they failed to beat it. If they finally manage to do it successfully, the price might even rise near 1.395. However, if they aren’t strong enough to do it, the price could fall to 1.385.