EURUSD and GBPUSD: Steady for now, pending the NFP report

• The fall of the euro stopped yesterday at the 0.97250 level.
• During the Asian trading session, the pound found support at the 1.11500 level, after which we see a return above the 1.12000 level.

EURUSD chart analysis

The fall of the euro stopped yesterday at the 0.97250 level. EURUSD manages to find support there and initiate a bullish recovery. During the Asian trading session, the euro moved above the 0.97500 level. It is currently at 0.97750, and we could see a test of the 0.98000 level. To continue the bullish option, we need to stay in that zone.

Then, with positive consolidation, we could continue the recovery. Potential higher targets are 0.98500 and 0.99000 levels. For the bearish option, we need a continuation of yesterday’s negative consolidation and new testing of the previous low at 0.97250. If we stay longer in that zone, we could see a break below and the continuation of the fall of the euro. Potential lower targets are 0.97000 and 0.96500 levels.

GBPUSD chart analysis

During the Asian trading session, the pound found support at the 1.11500 level, after which we see a return above the 1.12000 level. On the downside, we have a trend line that is managing to repel any attempt by the pound to break below for now. To continue the bullish option, we need a positive consolidation that would move us toward the 1.13000 level. Then we must hold above and continue the recovery with a new bullish impulse.

Potential higher targets are 1.14000 and 1.15000 levels. At the 1.15000 level, additional pressure would be created by the upper trend line. We need a negative consolidation and a drop below this morning’s support at the 1.11500 level for a bearish option. We could then see further descent towards the 1.11000 support level. A break below would increase pressure on the pound. Potential lower targets are 1.10000 and 1.09000 levels.