EUR/USD, GBP/USD and EUR/GBP Forecast – US Dollar a Touch Soft in Friday Session

EUR/USD Technical Analysis

The euro has rallied ever so slightly against the US dollar during trading on Friday, as we are seeing a little bit of recovery in the euro. Frankly, this looks like a very weak recovery, and at this point, I am looking for some type of opportunity to start shorting this market. I still believe that the euro will go to the 1.14 level, and I also recognize the 50-day EMA above as being a potential barrier.

GBP/USD Technical Analysis

The British pound has fallen a little bit during the trading session on Friday, but it does look like it’s trying to recover a bit. I believe at this point, the 1.32 level is an area that you’ll need to see, as it could be a significant barrier. If we break above the 1.32 level, then we may go looking to the 200-day EMA, but I think there’s a lot to be said about the overall downtrend still remaining pretty important. The Bank of England, although it did not necessarily cut rates, came pretty close to doing so this week, so I do think it’s only a matter of time before the market rolls over again.

EUR/GBP Technical Analysis

The euro has rallied slightly against the British pound during the trading session on Friday as we continue to consolidate after the breakout. The 0.8750 level has been pretty significant resistance previously, and now it looks like we are just going back and forth, trying to absorb these gains and determine whether or not traders are comfortable being up here. I still believe the 0.8750 level will continue to be support, right along with the 50-day EMA. So, I continue to buy dips in this pair, as I think the euro is going to climb to the 0.89 level before it’s all said and done, based on the measured move of the ascending triangle that we broke out of.

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