Daily Technical Analysis

EUR/USD

Current level – 1.0797

The pair is in a consolidation phase after losing nearly nine figures in less than 2 weeks, falling from 1.1494 and reaching 3-year lows at 1.0634. As has been the case since the start of the coronavirus pandemic, the pair will be driven by the change in new coronavirus cases in Europe and the US and investors will then judge which of the two economies will suffer the brunt. The extreme stimuli by the central banks will also play their part in determining which currency will depreciate more. The 1.0780-1.0830 zone is an important psychological level in terms of key resistance, and until it is overcome, we can expect new negative movements of the pair.

USD/JPY

Current level – 110.35

The expectations here are for the support at 109.94 to a stop to the bearish momentum and the pair to continue moving upward towards a test and a possible breakout of the resistance at 111.34. If broken, the pair should head to the next major resistance at 112.20.

GBP/USD

Current level – 1.1619

The pound has lost nearly twenty figures against the dollar in the last ten days, largely due to inadequate government measures to curb the coronavirus infection and the appreciation of the greenback. Although there are already changes in the measures in question, they are not enough and this is evident from the reaction of investors and the current levels of the pair. Expectations are that the important technical and psychological resistance at 1.20 will not be broken and if the measures do not tighten further, we may even see new lows very soon. The first important support is 1.1480.