On Friday both EURUSD and GBPUSD went up a bit. The volatility wasn’t really high, though. Today both currency pairs are falling slowly. What can they do next? Let’s try to answer that question in an analysis:
On Friday the EURUSD managed to rise a bit. The price finished the week below 1.18 though, the bulls weren’t strong enough to beat that level. Today, the price is going down, but the volatility is still rather low. Right now the bulls are trying to defend the S1 support level. If they do it successfully, the price might even rise above 1.18 and test the R1 resistance level today. But if they fail, the price could even reach the S2.
The GBPUSD rose significantly on Friday. The price finished the week slightly below 1.38. However, it went down during today’s Asian trading session. This morning the situation changed once again, though. When the bears attacked the EMA 77, the bulls generated some serious appetite and bounced. If they continue going up strongly, the price might rise above 1.38 today. But if the bears show their power one more time, the price could finally fall below the EMA 77.