EURUSD and GBPUSD: Chance to Form a Twenty-year Low

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EURUSD and GBPUSD: Chance to Form a Twenty-year Low 

EURUSD and GBPUSD: Chance to Form a Twenty-year Low 

• During the Asian trading session, the euro weakened against the dollar.


• During the Asian trading session, the pound held above the 1.10500 level at 38.2% Fibonacci.

EURUSD chart analysis

During the Asian trading session, the euro weakened against the dollar. The pair again fell below the 0.97000 support level at 61.8% Fibonacci, and we are now looking towards the 0.96285 level at 78.6% Fibonacci. On September 29, the pair managed to find support in that place and begin recovery. If the pressure on the euro continues, the pair EURUSD could go down to the next low at the 0.95500 level. Below this level, the euro would form a new twenty-year low against the dollar. For a bullish option, we need a new positive consolidation and a return above the 0.97500 level, our previous support zone at 50.0% Fibonacci. Then a new bullish impulse is needed to move us up to the 0.98000 resistance level at $38.2 Fibonacci. A break above the euro would be an excellent move that would move the euro out of the critical zone.

GBPUSD chart analysis

During the Asian trading session, the pound held above the 1.10500 level at 38.2% Fibonacci. We are now seeing increasing pressure on the dollar, which could cause a further pullback to the next lower support. To continue the bearish option, we need a negative consolidation that would bring us down to the 50.0% Fibonacci at the 1.09200 level.

Here we could expect better support because in the previous rise, on that point, we had a break and a continuation of the bullish trend up to the 1.15000 level. If we fail to hold on to that position, the potential next target is the next low at the 1.08000 level at 61.8% Fibonacci. We need a new positive consolidation for a bullish option and hold above the 38.2% Fibonacci level. Then we need a break above the 1.11000 level, and the next target is the 1.12000 level at 23.6% Fibonacci. A move above would bring additional optimism for the continued recovery of the pound to the previous high at the 1.15000 level.

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