EURUSD Forecast: Will it Move Above 1.08600 and when?

• During the Asian trading session, EURUSD was slightly recovering from 1.08398 to 1.08578 levels.
• During the Asian trading session, GBPUSD managed to climb up to 1.26800 levels. 

EURUSD chart analysis

During the Asian trading session, EURUSD was slightly recovering from 1.08398 to 1.08578 levels. With the beginning of the EU session, the euro starts to weaken, and we see a retreat to the 1.08420 level. We may see a new test of the weekly open price before we continue to either side. With the new support, we can initiate a positive consolidation.

It would be important for us to move above 1.08600 and thus form a new daily high. Potential higher targets are 1.08700 and 1.08800 levels. If we do not get the support we are looking for at the Asian low, EURUSD will go on the defensive and turn to the bearish side.

In the zone around 1.08250, we encounter the EMA200 moving average. We expect to get his support and slow down or stop the fall of the euro. Potential lower targets are 1.08100 and 1.08000 levels.

GBPUSD chart analysis

During the Asian trading session, GBPUSD managed to climb up to 1.26800 levels. The pound weakened as the EU session began and retreated to 1.26650. Here, we expect to receive support and start further growth. Potential higher targets are 1.26900 and 1.27000 levels. Last Friday, we saw the pound pull back to the 1.26000 level.

There, we formed a weekly low, but soon, a positive consolidation followed, which took us above the 1.26500 level and the EMA200 moving average. After that, we managed to stabilize and close Friday at the 1.26500 level. If GBPUSD were to drop to this level, it would have the effect of increasing bearish pressure, and a drop below could occur.

This creates a new daily low and confirms the weakness of the pound. Potential lower targets are 1.26400 and 1.26300 levels.