Daily Technical Analysis

EUR/USD

Current level – 1.1176

It looks like the bulls found nice support at 1.11 and the pullback is most likely entering its final stage. Yesterday’s session was dominated by buyers and the euro managed to hold onto its gains against the greenback. If the consolidation resumes in the next few days, prices should remain limited above the support 1.11. A breach of the resistance 1.1180-1.12 would signal the renewal of the major move up and that can put 1.15 on the table. More substantial news that can impact the currency pair is the retail sales data coming from the U.S. at 12:30 GMT.

USD/JPY

Current level – 106.52

Yesterday the sharp recovery of the dollar was put on hold by the surprise FED decision to cut its funds rate by one percent. The resistance coming from the larger time frames is at around 108.50, while the intraday ones are the interim levels 106.80 and 107.50. At the moment sentiment is more or less neutral, however prices should remain above 105.10 if the recovery of the dollar is to remain in place. As a safe haven asset, the direction of the pair could also be impacted by the decisions and measures undertaken by governments and central banks to fight the economic impact caused by the COVID-19 pandemic. With rising uncertainty and markets trying to price in the consequences of the current events, volatility is likely to remain high.

GBP/USD

Current level – 1.2247

The Cable slowed down its plunge and prices consolidated just above the support 1.22 that was formed last October. Should bears continue their pressure we might see a breach of 1.22, targeting the next level at 1.1980. At the moment there are no convincing fundamentals to turn around the meltdown and it’s fairly possible for a range to take place. Having in mind how sharp the decline is, it’s possible to see a retracement go as high as 1.27. Today traders will monitor the data regarding monthly income and unemployment rate coming from the UK at 09:30 GMT.