EURUSD and GBPUSD: The Euro retreats below the 1.09000 level

• During the Asian trading session, EURUSD held above the 1.09000 level.
• During the Asian trading session, GBPUSD held around 1.27000 levels.

EURUSD chart analysis

During the Asian trading session, EURUSD held above the 1.09000 level. As the EU session began, the euro began to weaken and fall below the support level. We are now at the 1.08900 level and could expect to see a continuation of the pullback to the next support at the 1.08800 level. Depending on the strength of the impulse, it could depend on the further decline of EURUSD.

Potential lower targets are 1.08700 and 1.08600 levels. We need a positive consolidation and a return above the 1.09000 level for a bullish option. After that, we need to hold above if we want to see the recovery continue. Potential higher targets are 1.09200 and 1.09400 levels. Today’s important economic news is the index of purchasing managers in production from Germany, the UK and the US.

GBPUSD chart analysis

During the Asian trading session, GBPUSD held around 1.27000 levels. The pound weakened at the beginning of the EU session, and the pair began to retreat. We are currently below the 1.26800 level with an eye on the 1.26600 support level. If the bearish trend continues, we could again find ourselves in last week’s support zone.

Potential lower targets are 1.26400 and 1.26200 levels. We need a positive consolidation and a jump to the 1.27200 level for a bullish option. Then we need to keep up there in order to start further recovery. Potential higher targets are 1.27400 and 1.27600 levels.