Daily Technical Analysis

EUR/USD

Current level – 1.0910

Yesterday was a holiday in the USA and the United Kingdom and this affected the currency markets in terms of lack of volatility and slow price action. However, the pair managed to form a local bottom above the support at 1.0886 and it seems that the retracement is nearing its end. Bulls are still in control and a breach of 1.0920 and a charge towards 1.1000 seem possible. An alternative scenario, where the 1.0886 support is violated, would disrupt the pattern of the complex pullback and would confirm that the bulls have exited the market. The next support is at 1.0830 and, if the price reaches it, that would signal a continuation of the range between 1.0770-1.1000, without any of the sides showing signs of dominance. Today, traders will monitor the new home sales and consumer confidence data coming from the US at 14:00 GMT.

USD/JPY

Current level – 107.82

Buyers are again testing the resistance zone of 107.80-108.06 and the diminished volatility and the small ranges below that zone signal for a possible breach relatively soon. Major support here is at 107.37, and it’s desirable not to be violated in order to maintain the overall bullish picture. If 108.06 gets overthrown, buying pressure will gain momentum and a possible target would be the next resistance around 109.20.

GBP/USD

Current level – 1.2203

The support at 1.2170 managed to hold the bear pressure and buyers might soon test the resistance at 1.2235. The pair struggles to find direction and sentiment remains neutral. While there is a slowdown in the short-term downtrend, a break above 1.2300 would be necessary to turn the market sentiment around.