EURGBP and EURCHF: EURCHF climbs to a new February high

EURGBP chart analysis

Last week, EURGBP was stable until Thursday. On Thursday, there was a sharp drop in the euro, which favoured the pound. The pair is retreating from 0.85700 to 0.85500 levels. On Friday, the pressure on the euro increases, and we fall even lower to 0.85284 levels. There, we form last week’s low and close the market at the 0.85400 level.

During the Asian trading session, the pair initiated a bullish consolidation and formed a daily high at the 0.85585 level. For now, we have resistance in that zone and are pulling back to support at the 0.85480 level, continuing to move in the bullish channel. We will try to look for additional support in the EMA200 moving average to continue the recovery. Potential higher targets are 0.85600 and 0.85650 levels.

EURCHF chart analysis

During the Asian trading session EURCHF continues the previous bullish consolidation above the 0.95400 level. In the EU session, the euro remains ahead of the Swiss franc, pushing us to a new annual high of 0.95491. We expect to see EURCHF at higher levels by the end of the week. Potential higher targets are 0.95600 and 0.96700 levels.

We need a pullback below the 0.95300 support level for a bearish option. This would form a daily low and confirm the bearish momentum. EURCHF would be under pressure to look for new support, and potential lower targets are 0.95200 and 0.95100 levels. The pair could stop the decline at the 0.95100 level because there we encounter the EMA200 moving average, whose support we have had in the previous three weeks.

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