The U.S. dollar benefitted as a safe haven after the market was shaken by deadly terror attacks in Brussels. The terrorist bombings add to security concerns in Europe and may reinforce arguments against migrants and refugees to some people. Although the strikes put pressure on European currencies the euro traded resiliently against the U.S. dollar. While it initially dropped below the important support at 1.12, the bearish move was only short-lived and the euro ended the day above 1.12.
The British pound was the worst performer in the aftermath of the attacks and responded with a sharp decline towards the 1.42-level. The recent incidents have provoked increasing concerns regarding immigration which many people associate with terrorism. Immigration is an essential topic of the U.K. referendum in June and investors fear that the attacks increase the likelihood of a majority voting in favor of leaving the EU. In the light of the ongoing Brexit risks the pound should be vulnerable to further losses.
GBP/USD
Sterling is approaching the support line of its short-term uptrend channel which is currently around the 1.4150-level. For the time being we expect the 1.4160/50-level to lend a short-term support to the currency pair. If this assumption is true we could see pullbacks towards 1.4270 and 1.43. However, the risk is to the downside and if sterling breaks below 1.4135 next bearish targets could be at 1.4090 and 1.4060. 
EUR/USD
After a significant break of 1.12 a next lower target could be currently at 1.1170 (support line) from where the euro could rebound. In case of a pullback we expect current resistance levels at 1.1215/20 and 1.1250 to limit gains in the pair. However, a break below 1.1130 could send the euro towards 1.1090/70. 
There are no major important economic reports scheduled for release today and the performance of both currency pairs could thus hinge on risk appetite.
U.S. New Home Sales, due at 14:00 GMT is not expected to have a significant impact on the U.S. dollar.
Here are our daily signal alerts:
Daily Forex Signals:
EUR/USD
Long at 1.1235 SL 25 TP 20, 45
Short at 1.1185 SL 25 TP 20, 50
GBP/USD
Long at 1.4240 SL 25 TP 30, 50
Short at 1.4170 SL 25 TP 20, 50
We wish you good trades and many pips!
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