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

EUR/USD

Current level – 1.1172

The appreciation of the Euro continues as momentum is gaining more and more traction thanks to the signed phase one trade deal between the US and China. Right in the beginning of the trading session the resistance at 1.1170 was breached and the price managed to hold above that level. That is a key level and, should the breach be confirmed, we can expect a change in market sentiment from the higher time frames. It’s possible for the volatility from the start of the session to continue throughout the day, with next resistances being at 1.1210 and 1.1270. Near supports for the price action are the levels around 1.1140 and 1.1100. More significant moves can be expected around the release of the retail sales data coming from the US at 13:30 GMT.

USD/JPY

Current level – 109.56

Optimism around reaching a trade agreement between the US and China, as well as the withdrawal of new tariffs on imports blasted the Dollar in the past day. Daily resistance levels were easily breached and the pair is now headed towards a test of the 109.67 high. Momentum is looking strong, breaching the high and making the next target at 110.50 seem possible. Key support levels here are 109.20 and 108.90.

GBP/USD

Current level – 1.3455

With the announcement of the exit poll results of the General election in the UK, the pound spiked in a matter of minutes with more than 2.4%. The expected win and a possibility to form a majority parliament for the tories rallied the pound to a little bit over 1.35. This way, the conservative party can pass the Brexit deal with the EU through parliament. It’s highly likely for the volatility to continue as final results are yet to come. First support levels are around 1.33 and 1.3170. Should the final results confirm exit polls, we might see another push towards 1.36.