EURUSD and GBPUSD: New Lower High
- During the Asian trading session, the euro retreated against the dollar.
- The pound continues the pullback from yesterday from the 1.15000 level to the current 1.12500 level.
- Eurozone retail sales fell for the third month in a row in August.
EURUSD chart analysis
During the Asian trading session, the euro retreats against the dollar. The pair formed a new lower high at 0.99280. Since then, the decline has continued to the 0.98850 level. This resistance coincided with the 61.8% Fibonacci level. The pair could retest the support at 0.98500, at the 50.0% Fibonacci level. We need a continuation of the negative consolidation and a further pullback below the previous low for a bearish option. Potential lower targets are 0.98000 and 0.97500 levels. For a bullish option, we need a new positive consolidation and a return above the 61.8% Fibonacci level. Then we need to maintain above, and with a new bullish impulse, we would see the continued recovery of the euro. Potential higher targets are the previous high at 1.00000 and 1.00500 at the 78.6% Fibonacci level.
GBPUSD chart analysis
The pound continues the pullback from yesterday from the 1.15000 level to the current 1.12500 level. Here we could expect some support at the 61.8% Fibonacci level. We need a continuation of the negative consolidation and a pullback below the 1.12000 level for a bearish option. The previous consolidation zone was in the range of 1.11000-1.120000, and we could expect a certain hold there. Potential lower targets are 1.11000 and 1.10500 levels at 50.0% Fibonacci. For a bullish option, we need a new positive consolidation and a return above the 1.14000 previous high. After that, we would be able to continue towards the 1.15000 level. Potential higher targets are 1.16000 and 1.17000 levels.
Market Overview
Eurozone retail sales fell for the third month in a row in August. Retail sales fell 0.3% month-on-month in August, following a 0.4% decline in July. On an annual basis, retail sales fell by 2.0% in August.
