EURUSD and GBPUSD: Little Movement

The euro managed to stabilize above the 1.00000 level yesterday.
Today, the pound moved above the 1.14000 support level. Today’s maximum is the 1.14600 level.
Producer price inflation in Germany hit a new record in August, boosted by energy prices, data released by Destatis showed on Tuesday.

EURUSD chart analysis

The euro managed to stabilize above the 1.00000 level yesterday. During the Asian trading session, the pair EURUSD rose to 1.00500 levels, after which we see a further weakening of the euro and a retreat to 1.00000 support levels. Producer price inflation in Germany rose a whopping 7.9% to 45.8% in August, the largest increase since the survey began in 1949. This information could further threaten the European currency. We need a continuation of the negative consolidation and a drop below the current support level for the bearish target. In the continuation, the euro would once again test the 0.99500 level of support. Failure to maintain this level would increase the pressure on the euro. Potential lower targets are 0.99000 and 0.98500 levels. For a bullish option, we need a new positive consolidation and a move above the 1.00500 previous high. Then we would get support in the moving averages. The next target is at the 1.01000 level. If we manage to climb above that level, potential higher targets are 1.01500 and 1.02000 levels.

GBPUSD chart analysis

Today, the pound moved above the 1.14000 support level. Today’s maximum is the 1.14600 level. For now, we fail to break above and see a pullback again towards the 1.14000 level. We need the pound to break below and continue the negative consolidation for a bearish option. We are looking for the first support at the 1.13500 level, our previous low over the last two trading days. A potential lower target is the 1.13000 level. For a bullish opinion, we need a new positive consolidation. Our first resistance is at the 1.15000 level with the MA200 moving average. If we managed to climb above and maintain that level, we would have a chance for further recovery. Potential higher targets are 1.15500 and 1.16000 levels.

Market Overview

Producer price inflation in Germany hit a new record in August, boosted by energy prices, data released by Destatis showed on Tuesday. Producer prices recorded an annual growth of 45.8% in August, faster than the growth of 37.2% in July. In August, energy prices increased by 139.0% compared to last year. On a monthly basis, producer prices rose by 7.9 %, the highest in history.

The post EURUSD and GBPUSD: Little Movement appeared first on FinanceBrokerage.