Yesterday, the US dollar gained some real strength. Both EURUSD and GBPUSD dropped heavily. Today the EURUSD is falling even more and the GBPUSD is showing mixed sentiment. From the data front, the initial jobless claims and new home sales will be published in the US. Anyway, let’s start the analysis:
The EURUSD dropped heavily yesterday. The price finished the day at 1.21, significantly below the S1 support level. Today it is showing mixed sentiment, but now it seems that the bulls have taken control over the market at the start of the European trading session. If they continue generating firm demand, the price might rise to the R1 resistance level today. But if they don’t, the price could drop to 1.205.
The GBPUSD also dropped significantly yesterday. The price finished the day below 1.37 and the EMA 77. Today, the price is falling even more. If the buyers don’t generate some serious appetite pretty soon, the price could even drop below 1.36. But if they do, the price should return above the EMA 77.