Daily Technical Analysis

EUR/USD

Current level – 1.0939

Yesterday the currency pair managed to reach the resistance zone around 1.0960 and 1.0980, however the power of the bulls was insufficient  and failed to overtake it. The expectations are for another attempt for a breach, and if successful, the price may rise towards 1.1015 and even 1.1140. If buyers fail again, they might take a rest and search for new entries below 1.0900. This, on the other hand, could lead to a slowdown in price action and the market will probably enter a range phase. As long as the pair is above 1.0830, bull sentiments should dominate the scene. The first support is at 1.0880. Today the most impactful news that can cause a spike in volatility are a series of inflationary data for the Eurozone at 09:00 GMT.

USD/JPY

Current level – 107.76

Yesterday the currency pair managed to get out of its pullback phase reaching 108.08 where first sellers entered the market and prices consolidated. Local support for the rally is at 107.70 and the more important one is around the 107.37 zone. Sentiment remains cheerful and the rally can still resume, but if 108.08 is broken, the next target would be at 108.45, followed by 109.00.

GBP/USD

Current level – 1.2261

The British pound managed to score back to back gains despite the mixed UK employment data from yesterday. Prices managed to hover above 1.2235 which is a positive sign and bulls might try to overtake the resistance at 1.2300, targeting the next one at 1.2366. An eventual retracement desirably should be limited above 1.2180, in order to keep hopes alive for a turnover of the major downtrend.