EURUSD and GBPUSD: The Euro is stable above 1.10000 level

EURUSD chart analysis

The EURUSD has been in an uptrend for the past two weeks. On December 8, after the formation of the December low at the 1.07237 level, the pair gained support and began a bullish trend that is still current. On Friday, the euro rose to the 1.10400 level and formed a new high there. The last time we were there was in August. After that, we see a minor pullback and a test of last week’s high at 1.10000. level.

Today is Christmas in Catholic countries and the market is closed, and we expect the market to return to normal operation tomorrow afternoon in the US session. That doesn’t stop us from analyzing the chart and preparing for this week. Based on the previous movement, we expect to see a continuation to the bullish side and climb above the 1.10500 level. With further bullish momentum, the euro would have the opportunity to form a new December high. We need a pullback below 1.09500 and the EMA50 moving average for a bearish option.

GBPUSD chart analysis

Looking at the GBPUSD chart in the last two weeks, we notice a slight pullback from the December high at the 1.27944 level. Last week, the pair went down to support at the 1.26200 level twice. After receiving the desired support, the pair initiated a bullish consolidation, returning above the 1.27000 level. On Friday, we saw the formation of a high at the 1.27450 level. As the end of the market approached, the pound retreated to new support at the 1.26900 level.

Today, the market is closed and we will resume tomorrow. The pound could pull back to the EMA50 moving average and test its support. A drop below would direct us to return to the previous support zone around the 1.26200 level. We cannot rule out testing the 1.26000 level either.

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