Daily Technical Analysis

EUR/USD

Current level – 1.1684

Demand for U.S. dollars rose as new lockdowns sparked search for safe haven assets. The sell-off was further exacerbated by a weakened euro as the ECB signaled further monetary easing. The market found support around the level of 1.1657, however, this level is not yet tested and can be considered fragile. The market is currently found at the bottom level of a range that started mid-summer. Тhere is buying interest below the resistance at 1.1700, but the economic indicators don’t favor the bulls. There might be a more complex pullback around the 1.1610-1.1657 area. If bears manage to take out the support at 1.1610, the next one will be found deeper down, at the level of around 1.1375. The long range may have spelled the end for the pair’s uptrend and a bullish scenario would only be possible above the level of 1.1860. Today, investors will expect the preliminary Eurozone GDP data to be released at 10:00 GMT.

USD/JPY

Current level – 104.44

Sellers that entered at around the 104.87 resistance level took their profits and gave up a substantial portion of the territory that they had previously gained as the pair found support around the level of 104.09. The breach below 104.39 didn’t have any momentum and buyers may now try to take prices to the resistance level of 104.87. The daily support is sitting at 104.39. If it holds, the market could enter a range or a deeper pullback might develop. There is a strong selling interest around the level of 105.20, which may get tested with a price spike due to the increased volatility.

GBP/USD

Current level – 1.2927

This week, the sterling is also losing positions against the Greenback. Dollar gains, however, remain capped as U.S. elections and COVID-19 are looming over the market. The support at 1.2860 has proven to be reliable and is expected to resist another test. At the time of writing the analysis, the pair is trading around the resistance at 1.2934,while the next one can be found at the 1.3000 level. If 1.2860 is breached, a drop towards 1.2700 in the near term, and even towards the level of 1.2550, can be expected. Bulls still have chances to make a comeback but, in order to dominate the market, they would first need to clear the level of 1.3060.