EUR/USD, GBP/USD and EUR/GBP Forecasts – US Dollar Softens on Monday

EUR/USD Technical Analysis

The euro has risen slightly against the US dollar during early trading on Monday as we continue to see an attempt to turn the whole ship around. The question at this point is, will we have follow through and I’m actually watching the 1.17 level to give us more of a heads up. If that happens and we break above there, then 1.8 is targeted. A pullback from here probably just continues the overall malaise that we’ve seen in the euro as of late.

GBP/USD Technical Analysis

The British pound is positive so far during the trading session against the US dollar, but is also just hanging around the 50-day EMA as well as the 200-day EMA. And I think ultimately at this point, you just have a market that doesn’t really know what it wants to do. And as long as that’s the case, it’s going to be very difficult to get aggressive one way or the other.

I think you need to pay close attention to the 1.3350 level. If we were to clear that, then I think that would be a very bullish sign. But ultimately, as things stand right now, this still looks like a longer-term softening pattern, but we’ll just have to wait and see whether or not that actually plays out.

EUR/GBP Technical Analysis

The euro is slightly positive against the British pound, although it’s worth noting that we had bounced from a major market memory-based area, so this probably isn’t a huge surprise. This is a pair that’s typically very choppy, and therefore, I think you need to look at it through the prism of trying to just play the range. The 0.8850 level above is a nice target.

The 0.8750 level of the course has been supported. If we were to break down below there, we could open up the door to 0.8650. But ultimately, this is a market that’s been in an uptrend for a while. I just don’t know if we have a lot of momentum. So, I think this is more or less going to be a bounce around in a range type of scenario.

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