EURUSD and GBPUSD: Significant Step up to the Higher Level

• Yesterday, the euro managed to make a significant step up to the 1.00800 level,
• During the Asian session, the GBPUSD pair made a break below the 1.16000 level.
• The unemployment rate in the eurozone fell to a historic low in July despite fears of a recession, Eurostat data showed on Thursday.

EURUSD chart analysis

Yesterday, the euro managed to make a significant step up to the 1.00800 level, but only until the end of the day. During the Asian trading session, the euro retreated to the 1.00000 level, and for now, we have some support at that level. Additional support at that point is in the MA200 moving average. The fall of the euro against the euro would increase the bearish pressure, and the pair could once again find itself at the 0.99200 level. For a bullish option, we need a positive consolidation and growth of the euro above the 1.00500 level. After that, if it manages to hold above, the next target is at the 1.01000 level. A break above the euro would mean the formation of a new higher high, which is a sign that we will see a continuation of the recovery.

GBPUSD chart analysis

During the Asian session, the GBPUSD pair made a break below the 1.16000 level. Today’s low is at the 1.15500 level, and looking at the chart, and it looks like we won’t stop there. A potential lower target is the 1.15000 support level. For a bullish option, we need a new positive consolidation and a pound return above the 1.16000 level. After that, it would be good if we managed to stay above and start a new bullish impulse. Moving up to the 1.16500 level would get additional support in the MA20 and MA50 moving averages. And the potential next higher target is the 1.17000 level and this week’s high at 1.17600.

Market Overview

The unemployment rate in the eurozone fell to a historic low in July despite fears of a recession, Eurostat data showed on Thursday. The unemployment rate fell to 6.6% from 6.7% in June. The region is facing a tough winter and recession, said Jessica Hinds, an economist at Capital Economics. Forecasts are that the unemployment rate is likely to rise from this level. Retail sales in Germany rose unexpectedly in July by 1.9% compared to June, when sales were down 1.5%.