EURUSD and GBPUSD – A Good Shake-up by the US CPI Report

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EURUSD and GBPUSD - A Good Shake-up by the US CPI Report 

EURUSD and GBPUSD – A Good Shake-up by the US CPI Report 

• Yesterday’s US CPI report gave EURUSD a good shake-up. In the first part of the day, the euro fell to 0.96300 levels; after the news, the pair EURUSD rose to 0.98000.

• In the second part of the day, we saw consolidation around that level, which continued during the Asian trading session. In the European session, we saw a new weakening of the European currency, and the pair retreated to the 0.97500 level.

EURUSD chart analysis

Yesterday’s US CPI report gave EURUSD a good shake-up. In the first part of the day, the euro fell to 0.96300 levels; after the news, the pair EURUSD rose to 0.98000. In the second part of the day, we saw consolidation around that level, which continued during the Asian trading session. 

In the European session, we saw a new weakening of the European currency, and the pair retreated to the 0.97500 level. For the bearish option, we need a continuation of this negative consolidation, and the pair would again find itself in the zone around the 0.97000 support level. Potential lower targets are 0.96500 and 0.96000 levels. 

We need a new positive consolidation and a euro return to the 0.98000 resistance level for a bullish option. After that, we need a break above and a new bullish impulse. After that, potential targets are the 0.98500 level and 0.99000 level on the upper trend line.

EURUSD chart analysis

GBPUSD chart analysis

During the Asian trading session, the pound’s growth stopped at the 1.14000 level. We have additional pressure on the pound in that zine in the upper trend line. This caused the pound to pull back further and is now at the 1.12350 level. We need a continuation of the current negative consolidation for a bearish option. 

Our first support could be at the 1.12000 level, and if we fail to stay there, we can expect a further weakening of the pound. Potential lower targets are 1.11000 and 1.10000 levels. For a bullish option, we need another positive consolidation and a return to the 1.14000 resistance level. We need to see a break above it and try to stay there. After that, we could expect the next bullish impulse and continued recovery. A potential higher target is the 1.15000 level.

GBPUSD chart analysis

 

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