EURGBP and EURCHF: The Euro is retreating on both fronts

EURGBP chart analysis

EURGBP has been in a bearish trend since the start of this week. We have been seeing a stronger bearish trend since Tuesday afternoon, when we formed a high at the 0.85886 level. Yesterday, we tried again to go to the bullish side but stopped at the 0.85855 level. After that, we start pulling back to 0.85650. Here, we meet the EMA200 moving average, which we managed to hold above during this morning’s Asian session.

With the start of the EU session, the pair begins to fall again and breaks the support at the EMA200 and 0.85650 levels. That takes us all the way down to 0.85484 where we formed a new weekly low. We are still under bearish pressure and could see a continued pullback to lower levels. Potential lower targets are 0.85450 and 0.85400 levels.

EURCHF chart analysis

EURCHF rose to 0.98202 level yesterday. With that, we formed a new weekly high. We stopped at that level and began to pull back in search of new support. During this morning’s Asian session, the pair received support at the 0.97800 level, after which it recovered to the 0.98000 level. There, we encounter a new resistance and create a strong bearish impulse that breaks through the previous support. This creates a new daily low at the 0.97600 level.

If this negative consolidation continues, the EURCHF could slide even lower. Potential lower targets are 0.97500 and 0.97400 levels. We need a positive consolidation and a return above the 0.97900 level for a bullish option. That brings us back above the daily open price to the positive side. If we stay above that level, we can expect support for the bullish side. Potential higher targets are 0.98000 and 0.98100 levels.

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