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EURUSD and GBPUSD overview of today’s chart


EURUSD and GBPUSD overview of today’s chart

EURUSD chart analysis

During Asian trade, the euro weakened against the dollar. The US currency consolidated after several days of withdrawal. The euro is now being exchanged for 1.12790 dollars, weakening the common European currency by 0.20% since the beginning of trading tonight. Prudence is once again prevalent in the financial market, and the strong recovery of the stock market on Wall Street and in Europe is somewhat slowing down. A regular meeting of the European Central Bank is today. At 14:30, a public address by Chair Christine Lagarde is expected. Her comments and answers will cause increased volatility in the market.

Bullish scenario:

  • We need continued positive consolidation and re-testing yesterday’s high at 1.13300.
  • An additional resistance at that level is the MA200 moving average, which was an obstacle for us yesterday.
  • If EURUSD overcomes that hurdle, the next one awaits us around 1.14000, the January 17 consolidation from which the bearish pullback continued.
  • At that level, additional technical resistance is our upper trend line.

Bearish scenario:

  • We need a continuation of this negative and a pullback to 1.12500, where we come across MA20 and MA50 moving averages.
  • The break below them leads us further towards 1.12000 to the first potential support zone, and if it does not last, we descend further towards the January minimum to 1.11200.
  • All below that are new values ​​this year for EURUSD.

eurusd-20220203

GBPUSD chart analysis

During Asian trade, the British pound slowed against the dollar. The US currency consolidated after several days of withdrawal. A regular meeting of the Bank of England is today. At 13:00, we expect a decision on the reference interest rate. Expectations are that the interest rate will be raised. The first increase was in December. The pound is now exchanged for $ 1.36100, which is weakening the British currency by 0.27% since the beginning of trading tonight.

Bullish scenario:

  • We need continued positive consolidation and reorientation.
  • Moving averages are on the bullish side, and for now, provide GBPUSD support on the chart.
  • Our next target is 1,36500, the previous high is on January 20, and if the bullish trend continues, our main target is this year’s high at 1.37500.

Bearish scenario:

  • We need a negative consolidation that would pull us to 1.35000 support zones.
  • Additional support at that level is MA20, MA200, while MA50 is in the zone around 1.34500.
  • In the further bearish continuation, we find support at 1.34000, and if the bearish pressure continues, the GBPUSD pair descends further towards the large support zone around 1.32000, the minimum from 2021.

gbpusd-20220203

Market overview

British news

The recovery in the UK service sector has gained momentum as pandemic restrictions have eased and customer demand has recovered, final data from the IHS Markit on Thursday showed.

The Chartered Institute of Procurement & Supply Manager’s Index rose to 54.1 in January from a 10-month low of 53.6 in December. The prognosis was 53.3.

Overall private sector growth accelerated slightly in January. The combined production index rose to 54.2 in January from 53.6 in the previous month. The prognosis was 53.3.

European news

The private sector in the eurozone weakened in January as Omicron is a variant of the limited activity of COVID-19, especially in the services sector, final data from the IHS Markit survey showed on Thursday.

The composite production index fell to 52.3 in January from 53.3 in December. The prognosis was 52.4.

The indicator showed the weakest growth in business activity since the index returned to the territory of growth last March.

The index of service procurement managers reached 51.1, down from 53.1 in December to the current 51.2. Weaker expansion in January reflected milder growth among service providers, as output grew faster.

Germany recorded some recovery in business activity in January, returning to growth territory after a partial decline in December.

The post EURUSD and GBPUSD overview of today’s chart appeared first on FinanceBrokerage.



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