EURUSD and GBPUSD: The euro retreats against the USD

• During the Asian trading session, the EURUSD encountered resistance in the zone around the 1.09000 level.
• During the Asian trading session, the pound encountered resistance at the 1.24000 level. 

EURUSD chart analysis

During the Asian trading session, the EURUSD encountered resistance in the zone around the 1.09000 level. After which, it sees a bearish consolidation and pullback to the 1.08500 support level. The pair are now looking for support at this point to try to continue the further recovery of the euro. We need to get back above 1.09000 again so that we have a new chance to test yesterday’s high at 1.09270 level. If we manage to break above, potential higher targets are 1.09500 and 1.10000 levels.

For a bearish option, we need a negative consolidation and a continuation of the descent toward the 1.08000 level. Last week we managed to stay above that level. A break below would cause the euro to fall even lower. Potential lower targets are 1.07500 and 1.07000 levels.

GBPUSD chart analysis

During the Asian trading session, the pound encountered resistance at the 1.24000 level. A pullback followed this to the 1.23000 level, and we are now trying to hold on to that spot. A bearish option could arise if it breaks below the 1.23000 level. Then we would likely see a drop to the 1.22000 support level. We need a positive consolidation and a return to the 1.24000 level for a bullish option.

A breakout of the pound above would greatly benefit us as we would then retest the previous high at 1.24500. And we would approach the 1.25000 psychological level for the pound.