EUR/USD, GBP/USD and EUR/GBP Forecast – US Dollar Continues to Show Strength

EUR/USD Technical Analysis

The euro has fallen pretty significantly during the early hours on Tuesday, as it looks like we are reaching toward the 1.14 level. Short-term rallies at this point, I believe, end up showing selling opportunities as soon as the market pulls back a bit after that short-term rally. The 1.16 level is an area that has been important multiple times, and I think that is resistance, right along with the 50-day EMA.

GBP/USD Technical Analysis

The British pound has broken significantly to the downside during the trading session on Tuesday as well, as we are well below the support level. Ultimately, this is a market that should go looking to the 1.28 level. You can see we peaked during the September FOMC conference and statement, and with that, it just looks like a market that is going to continue to fall, perhaps down to the 1.27 level before it’s all said and done in this market, as it looks weaker by the day.

EUR/GBP Technical Analysis

The euro has rallied against the British pound during early trading but again continues to find quite a bit of trouble near the 0.88 level. Whether or not we can break above there and sustain the move to the upside remains to be seen, but you can make an argument here that we are in the midst of forming a bullish flag. The 0.8750 level should continue to be held as some type of support, with the 50-day EMA underneath there offering a bit of a trendline, if you will. So, at this point, it looks like the Euro is winning this battle.

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