EURGBP and EURCHF: EURCHF is going lower and lower

EURGBP chart analysis

During this morning’s Asian trading session, EURGBP managed to gain support at the 0.84200 level. After that, we saw the start of a bullish consolidation that took us up to the 0.84588 level. Here, we were very close to testing this week’s high of 0.84606, which formed on Monday. The pair has successfully stabilized above the weekly open price and we expect further continuation to the bullish side.

Potential higher targets are 0.84600 and 0.84650 levels. For a bearish option, we need a negative consolidation of EURGBP back to the 0.84350 level. With that, we move below the weekly open price to the negative side. After that, we expect to see a further pullback towards the moving averages. Potential lower targets are 0.84300 and 0.84250 levels.

EURCHF chart analysis

On Wednesday, EURCHF broke through last week’s low, thus lowering this pair to a new lower low. During this morning’s Asian trading session, we saw a continuation of the previous bearish consolidation and a pullback to a new low at 0.94422. We currently have support at that level, and the pair has recovered slightly to 0.94656. This brief bullish consolidation could trigger a larger recovery and move us further away from this support zone.

Potential higher targets are 0.94800 and 0.95000 levels. There, we return to the daily open price and within reach of the EMA 50 moving average. For a bearish option, we need to retest the previous low. EURCHF’s failure to sustain at that level will push it down to a new weekly low. Potential lower targets are 0.94200 and 0.94000 levels.

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