EURUSD and GBPUSD: The Euro could move above 1.06000

• During the Asian trading session, EURUSD was retreating from 1.06000 levels to support at 1.05735 levels.
• During the Asian trading session, GBPUSD pulled back to support at the 1.21500 level.

EURUSD chart analysis

During the Asian trading session, EURUSD was retreating from 1.06000 levels to support at 1.05735 levels. The euro gained strength at the beginning of the EU session and started a bullish impulse up to the 1.05900 level. We are currently holding around that level and hope for a break above to return to the 1.06000 level. A move above would indicate a potential continuation to the bullish side. And potential higher targets are 1.06100 and 1.06200 levels.

We need a negative consolidation and a return to testing this morning’s support around the 1.05700 level for a bearish option. Additional support in that zone is the EMA50 moving average. A drop in EURUSD below these two supports would confirm the bearish pressure and influence the continuation of the pullback. Potential lower targets are 1.05600 and 1.05500 levels.

GBPUSD chart analysis

During the Asian trading session, GBPUSD pulled back to support at the 1.21500 level. There, we get support and make a new positive consolidation up to the 1.21700 level. Additional pressure in that zone is created by the EMA50 moving average. A break above would confirm the dominance of the bearish option, and we could expect to see a continuation of the pound’s recovery. Potential higher targets are 1.21800 and 1.21900 levels.

We need a negative consolidation and pullback to this morning’s support at the 1.21500 level for a bearish option. A drop below would introduce uncertainty into the recovery, and we would see a drop to lower support levels. Potential lower targets are 1.21400 and 1.21300 levels.