EURUSD and GBPUSD – Maximum in the last 15 days

• During the Asian session, the euro recorded certain gains against the US currency.
• During the Asian session, the pound continued its last week’s bullish trend.
• The euro strengthened on Monday as investors sold the dollar in hopes that easing the quarantine in China could help global growth and divert investment to other assets and stocks.

EURUSD chart analysis

During the Asian session, the euro recorded certain gains against the US currency. The dollar index is in retreat after rising to 105.00 levels. Additional pressure on the dollar is the reduction in the 10-years yield of US bonds that are in retreat below 3%. The euro could take advantage of this and continue its recovery. For the bullish option, we need consolidation above 1.06000 levels. Our next target is the 1.06420 level previous high of May 04. If the strengthening of the euro continues, we could see this pair at the 1.07000 level, and the last time we were there was on April 26. We need a new negative consolidation and pullback below the 1.05550 level for the bearish option. After that, we could retest the support at the 1.05300 level, low from last Friday. Potential following bearish targets are 1.05000 psychological level, 1.04580, 1.04000 and last week’s low at 1.03475 levels.

GBPUSD chart analysis

During the Asian session, the pound continued its last week’s bullish trend. The pound is now at its maximum in the last 15 days, and we are very close to testing the previous high of 05 May. We could expect such a scenario today or tomorrow. If the pound manages to make such a move, our following bullish targets could be the 1.26500 level, then the 1.27000 level. We need a new negative consolidation and a pullback below the 1.25250 level for the bearish option. After that, we could expect a further pullback at the 1.25000 level, then to the next support zone at 1.24300-1.24500. Additional support in this zone is our lower trend line. A break below the support line could put us back on testing last week’s hunt at 1.21500. Before that, I am looking for potential support at the following levels: 1.23550, 1.23000, 1.22500 and 1.22000.

Market overview

The euro strengthened on Monday as investors sold the dollar in hopes that easing the quarantine in China could help global growth and divert investment to other assets and stocks.

The calmer mood in stock markets in early European trading also affected the dollar, which fell sharply last week. Also this year, the dollar remains the main currency for investors when risky assets fall and worries about the economy and high inflation.

“For now, we see this only as a temporary correction of the US dollar. If we look at the main reasons why the dollar has strengthened so much in recent months, we don’t think the fundamental story has changed significantly over the past week, “said MUFG analyst Lee Hardman. The US dollar rose by about 16% to its highest level in two decades.

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