EUR/USD, GBP/USD and EUR/GBP Forecasts – Currency Markets Show US Dollar Strength

EUR/USD Technical Analysis

The Euro has fallen a bit during the trading session here on Thursday as it looks like we are breaking down. I do think that at this point, we have made the decision that we are going to head to the bottom of the overall consolidation range.

Keep in mind that the 200-day EMA lies between here and the 1.14 level, so I think there is a squishy zone of support between 1.14 and 1.15, and that’s our target. Short-term rallies, I think, continue to get faded as the Euro just continues to show weakness. Now that being said, we’ve been in this range for months, and I don’t think that changes anytime soon.

GBP/USD Technical Analysis

The British Pound is breaking below the 50-day EMA, and I think it is finally starting to roll over. I did previously suggest that maybe this was a topping pattern. I think on Thursday, we’re starting to get that answer.

With that being the case, the 200-day EMA is the next target, and then after that, we could be looking at the 1.30 level. I have no interest in buying anymore, at least not until we break above 1.36, something that I just don’t see happening in the short term.

EUR/GBP Technical Analysis

The Euro has bounced slightly against the British Pound during trading on Thursday as the 200-day EMA continues to offer support. That being said, I still think this is a pair that probably falls, but short-term rallies are likely in the meantime.

I’m willing to fade those short-term rallies at the first signs of exhaustion. The 0.86 level underneath, I think, is your initial target. Anything below there really opens up the downside here, and we could go looking to the 0.85 level, followed by the 0.84 level. Above, the 50-day EMA offers a bit of a ceiling.

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