Yesterday, both EURUSD and GBPUSD dropped deeply. The EURUSD finished the day a little above the S2 support level and the GBPUSD got close to 1.41. However, both Forex pairs started rising this morning. From the data front, there will be many important releases in the US, such as durable goods orders and pending home sales in April, and GDP in Q1. Anyway, let’s start the analysis:
The EURUSD dropped heavily yesterday. The price finished the session a little above the S2 support level and below 1.22. During the first hours of today’s Asian trading session, it went down even more, but then it started rising. It’s already above 1.22. If the buyers continue generating firm demand, the price might even reach the R1 resistance level today. But if the bears show their strength once again, the price could fall to the S1.
The GBPUSD also dropped significantly yesterday. The price finished the day close to 1.41. During the first hours of today’s Asian trading session, it went down even more, but then it started rising. Right now the bulls are attacking the EMA 77. If they do it successfully, the price might rise to 1.415 today. But if they fail, the price could fall below 1.41.