On Friday both EURUSD and GBPUSD rose significantly. The EURUSD finished the last session of the week above the R1 resistance level and the GBPUSD went up above 1.40. During today’s Asian trading session both Forex pairs slightly dropped. What can they do next? Let’s try to answer that question in an analysis:
On Friday the EURUSD significantly went up. The price rose above the R2 resistance level, but in the afternoon it dropped a bit and finished the day above the R1. However, the price is slightly falling today. If the buyers don’t generate some serious appetite pretty soon, the price could not only drop below the EMA 200, but it might even reach the S1 support level. However, if they do generate, the price should return above the Pivot Point and hold there.
The GBPUSD also significantly went up on Friday. The price finished the week above 1.40. Today, the price is falling, though. Right now the bears are trying to cross the EMA 77. If the bulls defend it successfully, the price might bounce and return above 1.40. However, if they fail, the price could even drop to 1.39.