EURUSD and GBPUSD: Bullish recovery.

• During the Asian session, the euro consolidated above 1.05000 levels and started a bullish recovery.
• During the Asian trading session, the British pound strengthened against the dollar.
• The eurozone, current account deficit, widened significantly in April, mainly due to a lack of primary and secondary income, the European Central Bank said on Tuesday.

EURUSD chart analysis

During the Asian session, the euro consolidated above 1.05000 levels and started a bullish recovery. Our target is a 1.06000 level. The pair is currently facing resistance at the 1.05800 level, and the euro is making a new turn towards the 1.05500 level, seeking new support and trying to form a new lower low. We need a break above the 1.06000 level with positive consolidation to continue the bullish option. Potential higher targets are 1.06500, 1.07000 and 1.075000 levels previous high from 09 June. We need negative consolidation and a return to the 1.05000 support zone for the bearish option. A break below would increase bearish pressure to continue the fall of the euro. And the potential lower targets are 1.04500 and 1.04000 levels.

GBPUSD chart analysis

During the Asian trading session, the British pound strengthened against the dollar. The rush of dollars has stopped. The British Deputy Minister of Finance stated that he does not expect a recession in Great Britain. The pound made progress during the Asian trading session and climbed above the 1.23000 level. It is also positive that the pair has passed above all moving averages, and now we have their support. Our potential higher bullish targets are 1.23500 and 1.24000 levels. We need a negative consolidation and a return to the 1.22000 level for the bearish option. If the pound fell below that level, it would form a new lower low, which would mean a weakening of the pound. Potential lower support targets are 1.21500, 1.21000, and 1.20000 level June support zone.

Market overview

Eurozone Current Account Deficit

The eurozone, current account deficit, widened significantly in April, mainly due to a lack of primary and secondary income, the European Central Bank said on Tuesday.

The current account deficit widened to 6 billion euros from 2 billion euros in March.

The trade deficit narrowed to 3 billion euros from 4 billion in the previous month. At the same time, trade in services had a surplus of 12 billion euros, but less than the March surplus of 14 billion euros.