Yesterday, both EURUSD and GBPUSD rose strongly. The EURUSD finished the day above 1.22, on the EMA 200 and the GBPUSD went up above 1.366. Today, the EURUSD is showing mixed sentiment and the GBPUSD is still going up. From the data front, the markets will be focused on CPI and core CPI, which will be released in the US. Anyway, let’s start the analysis:
The EURUSD went up significantly yesterday. It finished the session above the R1 resistance level, 1.22 and the EMA 200. During today’s Asian trading session the price showed mixed sentiment and low volatility, but this morning it started falling. Right now it’s below 1.22. If the buyers don’t generate some serious appetite above the Pivot Point, the price could drop to the S1 support level. But if they do, the price might even reach the R1.
The GBPUSD went up strongly yesterday. It finished the day above 1.366. Today, the price is rising even more. If the buyers continue generating firm demand, the price might reach 1.37 pretty soon. But if the bears counterattack, the price could drop to the EMA 77.