Yesterday, the EURUSD showed mixed sentiment and the GBPUSD dropped significantly. Today, both currency pairs are going down, though. From the data front, all eyes will be focused on European Central Bank interest rate decision and the press conference. However, other important data, such as CPI and core CPI in the US will be published in the afternoon. Anyway, let’s start the analysis:
The EURUSD showed mixed sentiment yesterday. First the price rose high above the R2 resistance level and 1.22, but then, in the afternoon, it dropped and finished the session at the EMA 200 level. Today, the price is falling, though. Right now the bears are attacking the S1 support level. If the bulls successfully defend that level, the price might rise above the EMA 200. But if they fail, the price could even go down to the S2.
The GBPUSD dropped significantly yesterday. The price finished the session slightly above 1.41. Today, it is going down even more. If the buyers don’t generate some serious appetite soon, the price could fall to 1.405. But if they do, the price should return above 1.42.