EURUSD and GBPUSD: Difficulty Breaking Through The Barrier

• During the Asian trading session, the euro managed to hold above the 0.96000 level.
• During the Asian trading session, the pound managed to recover further from 1.07000 levels to 1.08000 levels.
• In the Eurozone, data on German GDP for the 3rd quarter and data on the business climate in Germany will be published.

EURUSD chart analysis

During the Asian trading session, the EURUSD managed to hold above the 0.96000 level. We had a minor recovery to the 0.96500 level, where we have some resistance for now. Then the euro came back again to test support at the 0.96000 level. We need a new positive consolidation above the 0.96500 level for a bullish option. Additional resistance at that point is in the MA50 moving average. A break above could push the euro down to the 0.97000 level, where we had resistance yesterday. Potential higher targets are 0.97500-0.98000 levels. For a bearish option, we need a drop below the support zone. After that, we would probably retest the previous low at the 0.95500 level. A potential lower target is the 0.95000 level.

GBPUSD chart analysis

During the Asian trading session, pound managed to recover further from 1.07000 levels to 1.08000 levels. For now, we have difficulty breaking through that barrier and continuing the pound’s recovery. Additional resistance in that zone creates the MA50 moving average for us, while we have support in the MA20 moving average. To continue the bullish option, we need positive consolidation and growth of GBPUSD to 1.09000 levels. At that point, we would retest yesterday’s high. A potential higher target is the 1.10000 level. We need a negative consolidation and pullback to this morning’s support zone at the 1.07000 level for a bearish option. A drop in the pound below would increase bearish pressure, and we could expect a further pullback to lower support levels. Potential lower targets are 1.06000 and 1.05000 levels.

Market Overview

In the Eurozone, data on German GDP for the 3rd quarter and data on the business climate in Germany will be published. ECB President Lagarde is speaking this afternoon. In the United States, investors will be watching for what the Fed chairman will say before the start of the US session, while traders will also take into account data on basic orders for US durable goods, CB consumer confidence data, and new home sales for August later today.