EURUSD and GBPUSD: Still under pressure

• During the Asian trading session, the euro strengthened slightly against the dollar.
• During Asian trading, the British pound is still under pressure against the dollar.
• German consumer confidence fell to a new record low in July.

EURUSD chart analysis

During the Asian trading session, the euro strengthened slightly against the dollar. The euro has jumped in the last few days, but the fact that, after the main actors, the eurozone is the biggest loser in the war in the neighborhood limits the recovery of the common European currency. The euro is currently 1.05850 dollars, which represents the strengthening of the common European currency by 0.03% since the closing of trading on Friday. The ECB Forum in Sintra, Portugal, continues today.

Christine Lagarde’s address and more indications of an increase in the interest rate in July and September are expected. We need to continue the positive consolidation for the bullish option and move above the 1.06000 level. After that, our potential targets are 1.06500 and 1.07000 levels. For the bearish option, we need negative consolidation and withdrawal to a lower level of support at the 1.05500 level. If we do not get adequate support at that level, we can expect a further pullback of the euro towards the 1.05000 level, the psychological support zone.

GBPUSD chart analysis

During Asian trading, the British pound is still under pressure against the dollar. Disagreements with the EU over the post-Brexit status of Northern Ireland continue and undermine the credibility of the UK. The European Union has warned that it would be a violation of international law if the United Kingdom took unilateral action regarding the current agreement.

Currency traders and investors remain concerned about the global recession as major central banks remain on track to tighten their monetary policies to fight inflation. The pound is changing for $ 1.22660, representing a strengthening of the British currency by 0.03% since the start of trading last night. In the previous seven days, the GBPUSD pair moved in the range of 1.22000-1.23000. For the bullish option, we need a break above 1.23000 and to stay above. After that, we could expect the pound to continue towards the 1.24000 level, our resistance of 16 June. For the bearish option, we need a pullback below 1.20000; after that, we can expect further descent to lower support levels.

Market overview

GfK German Consumer Climate

German consumer confidence fell to a new record low in July as consumers see the risk of the economy slipping into recession, according to the results of the GfK market research group’s research on Tuesday.

The consumer confidence index fell to -27.4 in July from a revised -26.2 in June. The forecast was -27.6.

The war in Ukraine and disrupted supply chains are especially raising energy and food prices and making the consumer climate gloomier than ever, said Rolf Burkle, a GfK consumer expert.

Burke said the European Central Bank should adopt an appropriate monetary policy to curb inflation.

Consumers see the risk of a recession. Problems in the supply chain and war are reducing production, and high inflation is burdening private consumption.