EURUSD and GBPUSD: Potential Lower Targets
Pair EURUSD continued the bearish trend started on Friday.
For the third day in a row, the pound is retreating from 1.22750 levels.
Japan’s industrial production rose more than expected in June, data from the Ministry of Economy, Trade, and Industry showed this morning.
EURUSD chart analysis
Pair EURUSD continued the bearish trend started on Friday. During the Asian trading session, the euro continued to weaken against the dollar. Now the euro is at the 1.01950 level, representing a weakening of the euro by 0.59% since the beginning of trading last night. We are below the moving averages again, and we could expect increased pressure on the euro this week. For a bearish option, we need a continuation of the negative consolidation to stay below the 1.02000 level. Potential lower targets are 1.01500 and 1.01000 levels. For a bullish option, we need a new positive consolidation and a return above the 1.02000 level. After that, we should hold above that level in order to start a new bullish impulse. The first target is the 1.02500 level, and additional resistances at that level are the MA20 and MA200 moving averages. Potential higher targets are 1.03000 and 1.03500 levels.
GBPUSD chart analysis
For the third day in a row, the pound is retreating from 1.22750 levels. During the Asian trading session, the pair failed to hold on to the 1.21500 level, and we saw a further pullback of the pound below the 1.21000 level. This morning’s minimum was at the 1.20500 level. The Dole pair finds immediate support and recovers to the 1.21000 level. Once again, we encounter resistance, and the pair again looks towards lower support levels. Potential targets are 1.20500 and 1.20000 levels. For a bullish option, we need a new positive consolidation and a move above the 1.21000 level. After that, we need to stay above to try to continue the recovery. The first higher target is the 1.21500 level. Additional resistance at that level is in the MA50 and MA200 moving averages. If we manage to climb above, the following targets are 1.22000 and 1.22500 levels.
Japan’s industrial production rose more than expected in June, data from the Ministry of Economy, Trade, and Industry showed this morning. Industrial production increased by 9.2% in June; expectations were that there would be a slowdown in that sector. On an annual basis, industrial production in June decreased by 2.8% compared to June last year. Japan’s gross domestic product increased by 2.2% on an annual basis in the second quarter of this year.
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