Yesterday, the EURUSD went up a bit. The bulls weren’t strong enough to beat the R1 resistance level, which was tested three times, though. The GBPUSD showed mixed sentiment. Today, the EURUSD is rising strongly and the GBPUSD is still showing mixed sentiment. From the data front, investors will be watching the release of such reports as durable goods orders, pending home sales in January and most importantly – the GDP in Q4, all in the US. Anyway, let’s start the analysis:
Yesterday’s session was really interesting. First, the EURUSD tested the R1 resistance level twice. Then it dropped and tested the S2 support level. After that it rose once again and tested the R1 one more time.The price finished the day slightly below it. Today the EURUSD is rising strongly. Right now the price is getting close to 1.22. If the buyers continue generating firm demand, the price should beat that level and hold above it for the rest of the day. However, if the bears counterattack, the price could drop to the Pivot Point.
The GBPUSD showed mixed sentiment yesterday. The price managed to test 1.42 twice, though. Today, nothing has really changed and the volatility is pretty low. If the bulls take control over the market, the price should attack 1.42 once more. But if the bears finally show their strength, the price could drop below the EMA 77 and 1.41.