Yesterday, the US dollar got some real strength. The EURUSD dropped heavily and finished the day slightly above the S2 support level. The GBPUSD went down a bit as well. However, both Forex pairs are rising today. From the data front, some important publications will be released in the US, such as building permits in January, Philadelphia Fed manufacturing index for the February and weekly initial jobless claims. Anyway, let’s start the analysis:
Yesterday was a really strong bearish session for the EURUSD. The price dropped heavily, it even tested the S2 support level in the afternoon and finished the day slightly above it. However, the price is going up today. If the buyers continue generating sufficient demand, the price might reach the R1 resistance level and the EMA 200 today. But if the bears take control over the market once again, the price could fall to 1.20.
The GBPUSD dropped a bit yesterday. The price tested the EMA 77 twice, but the bulls weren’t strong enough to beat it. In consequence, it finished the day at 1.386. However, the price is strongly going up today. If the buyers continue generating firm demand, the price should attack 1.39 and hold above it for the rest of the day. But if the bears counterattack, the price could fall below the EMA 77 once again.