EURUSD and GBPUSD: The Euro managed to start a recovery

• During this morning’s Asian trading session, EURUSD gained support at the 1.10400 level
• On Friday evening, GBPUSD retreated to a new low at 1.31098

EURUSD chart analysis

During this morning’s Asian trading session, EURUSD gained support at the 1.10400 level. At the start of the EU session, we saw bullish momentum and a jump to the 1.10700 level. This could be a hint that the euro will start a new bullish consolidation. For such a thing, we need momentum above 1.10800 to get support from the EMA 50 moving average. After that, the chances of starting a further recovery and visiting higher levels increase.

Potential higher targets are the 1.11000 and 1.11200 levels. For a bearish option, we need a negative consolidation and a return to this morning’s support at the 1.10400 level. With new pressure on that level, EURUSD could drop to a new low and thereby extend last week’s bearish trend. Potential lower targets are the 1.10200 and 1.10000 levels.

GBPUSD chart analysis

On Friday evening, GBPUSD retreated to a new low at 1.31098. During this morning’s Asian session, the movement took place in the 1.31250-1.31400 range. Here, we test the EMA 200 moving average and hope for its support. If that happens, we can hope for further progress to the bullish side by the end of the day. With the rise to 1.31600, we get the support of the EMA 50 moving average and thereby strengthen the bullish momentum.

Potential higher targets are the 1.31800 and 1.32000 levels. For a bearish option, we need a negative consolidation, a pullback below the EMA 200 and 1.31250. With that step, we will put pressure on GBPUSD to create a new daily low. After that, it is possible to test Friday’s low and thereby continue last week’s pullback. Potential lower targets are the 1.31000 and 1.30800 levels.