By Aleksandar Aleksin On May 22, 2024 1 minute, 33 seconds

EURUSD and GBPUSD - a good shake-up by the US CPI report

EURUSD and GBPUSD: EURUSD pulls back below 1.08500 level

Since the beginning of the week, the EURUSD pair has been in a bearish consolidation.
After a three-day lateral consolidation above the 1.27000 level, GBUPSD made a bullish move to the 1.27614 level today.

EURUSD chart analysis

Since the beginning of the week, the EURUSD pair has been in a bearish consolidation. On Monday, we formed a weekly high at 1.08846, after which we started to pull back. On Tuesday, we climbed only to 1.08750, and there we formed a lower high compared to the previous one. Also, yesterday, we saw the formation of a weekly low at the 1.08430 level. During this morning’s Asian session, the movement took place in the 1.08450-1.08650 range.

The euro continues under pressure and is now at the 1.08500 level. On the upside, we have the EMA50 moving average, which further reinforces the bearish momentum. Potential lower targets are 1.08400 and 1.08350 levels. It is very possible that we will go down to 1.08350 and test the EMA200 moving average there. In that zone, we will also test Friday’s low at the 1.08358 level.

GBPUSD chart analysis

GBUPSD experienced a bullish move to the 1.27614 level today, following a three-day lateral consolidation above the 1.27000 level. This move was triggered by a report on British inflation, which showed a real decline of 2.3% compared to economists’ forecasts of a decline to 2.1%. The unexpected positive data strengthened the pound, leading to the pair’s bullish move.

Such a picture could keep the pound high for the rest of this week. GBPUSD pulled back in the last two hours from a new weekly high. We are now at the 1.27300 level, and we are watching to see if we will see a retest to the previous zone or slide even lower. We could also expect a retest of the weekly open price at the 1.27000 level if this first support does not last.