EURGBP and EURCHF: EURCHF in retreat below 0.96300 level

EURGBP chart analysis

During this morning’s Asian session, EURGBP retreated to the 0.84535 support level. The euro is still under pressure as we see a weak retracement to the 0.84600 level. It’s crucial to note that we need a stronger bullish consolidation, a development that would significantly impact our trading strategy and potentially shift the market dynamics. Forming a high at the 0.84700 level would be a promising sign that the pair is slowly moving to the bullish side.

Looking ahead, potential higher targets are 0.84800 and 0.84900 levels, indicating a possible bullish scenario. However, we must also be prepared for a continuation of bearish consolidation and a new test of this morning’s low, which could lead to a bearish option. Holding positions for too long could result in an impulse below to a new weekly low, confirming a further pullback. In this case, potential lower targets are 0.84500 and 0.84400 levels.

EURCHF chart analysis

EURCHF continues its bearish trend for the third week in a row. A new lower low was formed at the 0.96256 level. This morning we had a breakout below last week’s low at 0.96700, after which the pair only strengthened its retreat. There are good chances to see a further pullback and the formation of a new lower low.

Potential lower targets are 0.96100 and 0.96000 levels. For a bullish option, we need the initiation of a new positive consolidation above the 0.96500 level. With that step, we have the opportunity to form a new bottom. Then, EURCHF would have to stabilize there and only then start further growth on the bullish side. Potential higher targets are 0.96600 and 0.96700 levels.

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