Yesterday, the US dollar got really strong in the evening, after the Fed meeting, that used hawkish rhetoric. In consequence, both EURUSD and GBPUSD dropped deeply. The EURUSD finished the session at the S4 support level, below 1.20. The GBPUSD went down below 1.40. Today, both Forex pairs are going down even more. From the data front, the CPI in May in the Eurozone and Philadelphia Fed manufacturing index in June in the US will be published. Anyway, let’s start the analysis:
The EURUSD dropped deeply yesterday evening. The price finished the session at the S4 support level, below 1.20. Today, the price is going down even more. Right now the bears are attacking the S1. If they do it successfully, the price might even reach 1.19 today. But if the bulls generate some serious appetite, the price might return above 1.20.
The GBPUSD also dropped heavily yesterday. The price finished the session below 1.40. Today, it is going down even more. If the buyers don’t generate some serious appetite soon, the price could fall below 1.395. But if they do, the price might return above 1.20.