EUR/USD, GBP/USD and EUR/GBP Forecasts – US Dollar Trying to Fight Back on Monday

EUR/USD Technical Analysis

This is the same play that we’ve seen multiple times over the last couple of weeks, where the Euro starts to slump in European trading. The question now is whether or not the Americans will sell off the US dollar as they have been doing. We are in a massive consolidation range, and until we get above the 1.1850 area, I think you have to assume that rallies are going to struggle.

GBP/USD Technical Analysis

The British pound has pulled back just a touch from the 1.35 level during the early hours, as again, the US dollar seems to be stubbornly strong. This is an area that I think will end up being very important overall. And if we pull back from here, we could go looking to the 1.3350 level right around the 50-day EMA. If we take off to the upside, I think 1.37 is probably our destination, maybe even 1.38. This is more likely than not going to be all about the US dollar and less about the British pound.

EUR/GBP Technical Analysis

The Euro rallied a bit during the early hours against the British pound, but it looks like the 0.8750 level is going to continue to be a bit of a barrier. If we can break above there, ostensibly breaking above the 50-day EMA, it opens up a move for another 50 pips to the 0.88 level. That being said, I think this is a fade of the rally move in general. I do think we are starting to roll over a bit as the Euro against the US dollar just can’t get above that 1.18 level, while the British pound did break through some reasonable resistance recently. Long-term, this is an area that we are in that has been difficult to overcome for the last several years. So, a bit of a drop from here wouldn’t be the most shocking outcome at all.

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