EURUSD and GBPUSD: The dollar index continues to weaken

• During the Asian session, the euro continues to advance and dominate against the US dollar. 
• During the Asian trading session, the pair GBPUSD rose to 1.21000 level. 

EURUSD chart analysis

During the Asian session, the euro continues to advance and dominate against the US dollar. Pair EURUSD is now at the 1.06500 level, and we could expect to see a break above and a continuation of the bullish trend. The next targets are 1.07000 and 1.07250 levels. For a bearish option, we need to go below the 1.06500 level. After that, a new negative consolidation and descent into the support zones 1.05750-1.06000 is needed. A break below and a weakening of the European currency would see the EURUSD continue to fall. Potential lower targets are 1.05500 and 1.05000 levels. We don’t have important economic news in the European session today.

GBPUSD chart analysis

During the Asian trading session, the pair GBPUSD rose to 1.21000 level. At the beginning of the European session, there was resistance at that level, and the withdrawal of the pound to 1.20500 followed. Current bearish pressure could push GBPUSD down to the 1.20000 support level. A break below this support would form a new December low and could extend the decline until the end of the month. Potential lower targets are 1.19500 and 1.19000 levels. We first need to get back above the 1.21000 level for a bullish option. Then we have to stay up there and, with the next positive consolidation, continue to start the recovery. Potential higher targets are 1.21500 and 1.22000 levels.

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