Forex Technical Analysis: EUR/USD, USD/JPY, GBP/USD

EUR/USD

Current level – 1.1108

The currency pair broke the resistance at 1.1100 and is managing to stay above it signalling that bulls are still in control. The next level which will test the buyers’ resolve should be the levels around 1.1140, followed by the important 1.1160-80 zone. First support is the previous resistance at 1.1100. Today’s interest decision by the Federal Reserve due at 18:00 UK time will be the main event traders will focus on. As of the present moment, the odds of a rate cut are 97.8% and, if market participants are disappointed, volatility will follow.

USD/JPY

Current level – 108.81

The pair did not manage to hold above the important resistance at 108.90 after it was broken yesterday. Despite the fact that the move to the upside is losing momentum, a new test of the resistance is expected. An eventual break of the aforementioned should lead to a continuation of the move up and the Ninja should head towards the next resistance at 109.90. First support is 108.40.

GBP/USD

Current level – 1.2861

The pair has been consolidating during the last few days in a range of about 1 figure, between 1.2800 and 1.2900. The main reasons for this are investor cautiousness due to the multiple Brexit scenarios and market participants pricing yesterday’s announcement for parliamentary elections on 12 December. The 1.2750 – 1.2800 zone can be considered an important support and, as long as the pair holds above this level, it should act as a positive for the pound. Important resistance remains at 1.3000 and, if broken, would mean continuation of the upside movement of the pair.