EURGBP and EURCHF: EURCHF in retreat below 0.96000 level

EURGBP chart analysis

The previous week was very bearish for EURGBP, pulling back from 0.85650 to 0.85074. After forming a low on Friday, the pair managed to hold above and initiate a recovery. During the Asian session, we climbed up to 0.85260 levels but are returning to the previous consolidation zone around 0.85150. We now expect new support here and the initiation of a new bullish consolidation with the aim of forming a new daily high.

Potential higher targets are the 0.85300 and 0.85400 levels. For a bearish option, we need a negative consolidation and a drop below the 0.85100 level. With that move, we are close to testing last week’s low. A new visit to that level could easily push the EURGBP below and form a new lower low. Potential lower targets are the 0.85000 and 0.84900 levels.

EURCHF chart analysis

During the Asian trading session EURCHF falls below the 0.96000 level. The pair pulled back to the 0.95800 level and is testing the EMA200 moving average support there. We are holding above for now, but we need to get back to 0.96000 if we plan to continue last week’s bullish consolidation. By moving above, we also skip the weekly open price and have an opportunity for further growth.

Potential higher targets are 0.96100 and 0.96200 levels. We need a drop below the EMA200 and the 0.95800 level for a bearish option. With this, we form a new daily low and get the support of the current bearish momentum. After that, the euro is forced to slide to a new support level, and the potential lower targets are the 0.95700 and 0.95600 levels.

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