EUR/USD Hits Last Year’s Lows, GBP/USD Drops Below 1.2400

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This week, European and commodity currencies suffer. Euro sellers broke last year’s low of 1.0330 and stayed below 1.0300, the GBP/USD pair dropped below 1.2400, and USD/CAD buyers tested the 1.4400 level.

EUR/USD

EUR/USD buyers failed to capitalise on the potential bullish correction signalled by the "Inverted Hammer" pattern. After a false breakout above 1.0450, the price sharply declined below the 2024 low at 1.0330. Yesterday, EUR/USD nearly reached the critical support level at 1.0220 but rebounded by the evening to 1.0270.

In the upcoming trading sessions, the pair might continue its correction toward recent highs at 1.0300–1.0330. If yesterday’s low at 1.0225 is breached, further downward movement to the 1.0100–1.0170 range might happen.

Key Events to Impact EUR/USD Today:

  • 11:55 (GMT+2): German Unemployment Change
  • 18:00 (GMT+2): US ISM Manufacturing PMI
  • 19:00 (GMT+2): Speech by ECB Representative Philip Lane

GBP/USD

Last week, GBP/USD buyers failed to sustain a move above 1.2600. Yesterday, the price not only broke the recent low at 1.2480 but also fell below 1.2400.

The next target for the downward movement could be the 2024 low at 1.2300. A corrective upward retracement might be to the 1.2460–1.2490 range. These levels previously acted as strong support and might now be tested as resistance before the start of a new bearish impulse.

Key Events to Impact GBP/USD Today:

  • 12:30 (GMT+2): Bank of England Consumer Credit
  • 12:30 (GMT+2): UK Mortgage Approvals
  • 21:00 (GMT+2): Atlanta Fed GDPNow Index