EURUSD and GBPUSD: The Euro returns to the positive side

• On Thursday, October 17, EURUSD retreated to 1.08112 to a new three-month low
• During this morningâ€s Asian trading session, GBPUSD saw a bullish consolidation from the 1.30100 level

EURUSD chart analysis

On Thursday October 17, EURUSD retreated to 1.08112 to a new three-month low. The pair managed to stop further retreat and start recovery. During this morningâ€s Asian trading session, the Euro continued to rise to 1.08500. In the zone of that level, we encounter the EMA 50 moving average, which has been a constant resistance for us this week. This time, we expect a break above and the formation of a new daily high.

Potential higher targets are 1.08600 and 1.08700 levels. For a bearish option, EURUSD would have to turn to the bearish side again. The important level is the 1.08300 daily open price. By breaking below, we go to a new daily low and strengthen the bearish momentum. Potential lower targets are 1.08200 and 1.08100 levels.

 

GBPUSD chart analysis

During this morningâ€s Asian trading session, GBPUSD saw a bullish consolidation from the 1.30100 level. At the start of the EU session, we saw a bullish impulse to 1.30700 to a new daily high. With that jump, the pair tested the weekly open level and the EMA 200 moving average. In the first swing, we failed to hold and saw a pullback to 1.30300. GBPUSD starts a new bullish momentum from this support level and has a new chance to return above the EMA 200 and the weekly open level to the positive side. 

Potential higher targets are 1.30800 and 1.30900 levels. For a bearish option, the pair should encounter resistance in the 1.30500 zone. After that, we expect the initiation of bearish consolidation below 1.30300 and a drop to 1.30200. There, we will test the EMA 50 moving average in the hope of stopping further decline. A break below means a continuation to the bearish side and the formation of a new low. Potential lower targets are 1.30100 and 1.30000 levels.

 

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