EURUSD and GBPUSD: The Fall of the Euro Stopped at 0.98750

• The fall of the euro stopped yesterday at the 0.98750 level.
• During the Asian trading session, the pound continued to recover from the 1.14500 level, yesterday’s low.

EURUSD chart analysis

The fall of the euro stopped yesterday at the 0.98750 level. Since then and during the Asian trading session, we have seen a recovery above the 0.99000 level. For now, today’s high was at the 0.99500 level. If this consolidation continues, the euro could rise to the 1.00000 level again. Above, we could expect the next major resistance because yesterday, we had resistance at that level, and we could not climb above it. 

To continue the bullish option, we need a more specific breakout above. Then we need to hold on there and continue the recovery with a new bullish impulse. Potential higher targets are 1.00500 and 1.01000 levels. We need a negative consolidation and a retest of yesterday’s low at the 0.98750 level for a bearish option. 

A break below would signal us to expect a further weakening of the European currency. Potential lower targets are 0.98500 and 0.98000 levels. Additional support at the 0.98000 level is in the lower trend line.

GBPUSD chart analysis

During the Asian trading session, the pound continued to recover from the 1.14500 level, yesterday’s low. We moved back above the 1.15000 level very quickly and are now at 1.15500. For a bullish option, we need a continuation of this positive consolidation to the next resistance zone at the 1.16000 level. 

Then we need to break through and try to stay there. Additional resistance for us is the upper trend line. If we manage to move further, the pound could form a new higher high and thus continue the bullish recovery. Potential higher targets are $1.17000 and 1.18000 levels. We need a new negative consolidation and a pound fall below the 1.15000 level for a bearish option. 

Then we would once again test the support at the 1.14850 level. A break below the pound would signify a potential further drop in GBPUSD. Potential lower targets are 1.14000 and 1.13000 levels.