EUR/USD, GBP/USD and EUR/GBP Forecasts – US Dollar Continues to Fight

EUR/USD Technical Analysis

The euro initially tried to rally against the US dollar during trading on Tuesday, but has given back gains pretty quickly, which we’ve seen multiple times. That being said, we are sitting above the 50-day EMA, which could offer a little bit of dynamic support, so keep that in the back of your mind.

With the jobs number coming on Friday, I think it makes a lot of sense that the markets aren’t really willing to throw a lot of money in one direction or the other. The ECB should be somewhat stable with its interest rate outlook; the Federal Reserve is likely to cut in the future, maybe once or twice.

GBP/USD Technical Analysis

The British pound initially tried to rally but gave back gains rather quickly as we are sitting right around the 1.35 level. This place has acted like a magnet for consolidation, with the 50-day EMA down at the 1.3361 level offering support and the 1.36 level above offering resistance. I think this is a situation where we are basically just stuck at this juncture, trying to figure out where to go next.

EUR/GBP Technical Analysis

The euro has bounced slightly against the British pound from the 200-day EMA. The 200-day EMA, of course, is an indicator that a lot of people will pay attention to, but after the massive selloff during the day on Monday, a little bit of a bounce here probably makes some sense. That bounce is something I plan on selling into at the first signs of exhaustion, especially if we get anywhere near the 0.8750 level. If we break down below the 200-day EMA, then I think it opens up a move down to the 0.86 level.

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