Daily Technical Analysis

EUR/USD

Current level – 1.1205

The low volatility since the start of today’s trading session helped the bears keep their fragile control over the price and kept the EUR/USD under the resistance level at 1.1242. The currency pair consolidated around the current price at 1.1205, while a new bearish push could easily lead to a test of the support level at 1.1140. A successful violation of the aforementioned level will draw an even more bearish picture and strengthen the expectations for the future depreciation of the euro against the dollar. If bulls re-enter the market, their target would be a violation of the zone at 1.1242 and a new attempt for a breakthrough of the resistance zones at 1.1350 and 1.1404. If successful, this could lead to а resumption of the rally which started at the end of May.

USD/JPY

Current level – 106.88

After the unsuccessful attempt at the 106.55 level of support, the pair seems to be forming a rather narrow range between 107.53 and 106.55. A successful breach of the lower border will show that bearish momentum is increasing and the USD/JPY could easily reach the lows from May – around 106.00. This will show that the negative sentiment is increasing and further losses of the Greenback against the yen are in order. In а positive scenario, the first minor resistance for the buyers lies at 107.19 and only a breach of the next level at 107.53 could lead to future gains for the USD/JPY, with the first target being the resistance level at 108.52 and possibly 109.75 in addition.

GBP/USD

Current level – 1.2420

After the Bank of England left rates unchanged, but boosted the QE (quantitative easing) stimulus by more than 100 billion pounds, the GBP lost some ground and the pair broke through the support level at 1.2498. The drop was limited around the current level at 1.2421, where the price is consolidating at the time of writing. If the bearish pressure persists, a test of the lower targets at 1.2360 and 1.2288 is highly probable. In the opposite direction, better than expected Retail sales in the UK (06:00 GMT) could encourage the bulls to take control. Their target would be the former support, now a resistant zone, at 1.2498 and potentially the next one at 1.2611, showing a shift in market sentiment.