Yesterday, the EURUSD dropped heavily and finished the day exactly at the S1 support level. On the other hand, the GBPUSD showed mixed sentiment. Today, the EURUSD is going down a bit and the GBPUSD is rising. From the data front, all eyes will be focused on the Fed’s monetary policy decision today. Markets may expect the Fed to increase the QE programme in order to counter the recent rapid rise in long-term yields that threaten normal recovery as access to cheap liquidity diminishes. Anyway, let’s start the analysis:
The EURUSD dropped significantly once again. The price finished the day at the S1 support level. Today, it is falling even more. Right now the price is below 1.19. If the buyers don’t generate some serious appetite pretty soon, the price might drop to 1.185 today. But if they do, the price might rise to the EMA 200.
Yesterday was a really interesting session for the GBPUSD. First the price dropped heavily and tested 1.38. Then it rose strongly and finished the day above 1.39. Today, the price is rising even more. If the buyers continue generating sufficient demand, the price might reach 1.395 today. However, if the bears take control over the market once again, the price could fall to 1.38.