EUR/USD, GBP/USD and EUR/GBP Forecast – US Dollar Attempting to Fight Back During Holiday Session

EUR/USD Technical Analysis

The Euro has gone back and forth during Thursday’s trading session, which is Thanksgiving in the United States, so keep that in mind. At this point, it is very interesting because we are sitting at a downtrend as well as the 50-day EMA. This is an area that could cause a little bit of hesitation. If we drop from here, the 1.15 level would be targeted. After that, the 200-day EMA and 1.14 would be targeted as well. It’s not until we break above the 1.17 level that there is any question as to whether the euro can start rising again. It is a sluggish and choppy market, and at this point in time, we are still looking somewhat soft.

GBP/USD Technical Analysis

The British pound did rally during the trading session, but it’s struggling with the 200-day EMA as well as the 50-day EMA just above the 1.32 level. This is an area that probably causes a few headaches, and it’s literally a 50-50 shot here as to which direction we go. I still believe in the downside eventually because we did have this massive rounding-top pattern.

But the last couple of days have been pretty brutal for the dollar against the pound, although Thursday is starting to see a little bit of pushback. That budget deal in London evidently got everybody excited, but really, at the end of the day, I don’t know that that matters in the end. I am still looking for selling opportunities.

EUR/GBP Technical Analysis

The euro has gone back and forth against the British pound during the trading session on Thursday as well and we are hanging around the 0.8750 level. We are also hanging around the 50-day EMA, but this level was previously resistance, so it should be support. We’ll have to wait and see, but if we can break above the highs of the Thursday session, I suspect that the euro bounces against the pound again and we go looking to the 0.88 level. Ultimately, I have no interest in trying to short this pair. It’s far too strong of an uptrend.

But I would have to take notice if we dropped below the 0.8725 level, as it would be a sign of trouble.

For a look at all of today’s economic events, check out our economic calendar.