EUR/USD & EUR/GBP: Key Support Levels Under Pressure
EUR/USD Technical Analysis:
At the time of writing, the EUR/USD pair is testing a critical support level at 1.1700. This level has been a key pivot point for the pair in recent months, and a break below it could signal further downside pressure. The 50-day moving average is also converging around this level, adding to its significance.
On the downside, if the EUR/USD pair breaks below 1.1700, the next major support level to watch is at 1.1600. This level has held as strong support in the past and could provide a bounce for the pair if tested. However, a break below 1.1600 could open the door for a deeper retracement towards the 1.1500 level.
On the upside, the immediate resistance for the EUR/USD pair is at 1.1800. A convincing break above this level could signal a reversal of the recent downtrend and open the door for a retest of the 1.1900 level.
EUR/GBP Technical Analysis:
The EUR/GBP pair is also facing pressure on key support levels, with the 0.8500 level coming under scrutiny. This level has been a major support and resistance level for the pair in the past, and a break below it could signal a continuation of the downtrend.
If the EUR/GBP pair breaks below 0.8500, the next support level to watch is at 0.8400. This level has held as strong support in the past and could provide a bounce for the pair if tested. However, a break below 0.8400 could open the door for further downside towards the 0.8300 level.
On the upside, the immediate resistance for the EUR/GBP pair is at 0.8600. A break above this level could signal a reversal of the recent downtrend and open the door for a retest of the 0.8700 level.
In conclusion, both the EUR/USD and EUR/GBP pairs are facing pressure on key support levels, with potential for further downside if these levels are breached. Traders should closely monitor these key levels and be prepared for significant price movements in the coming sessions.
