Daily Technical Analysis

EUR/USD

Current level – 1.1193

The euro continues to lose ground against the dollar, reaching 1.1167 in the early hours of today’s trading session. This decline is expected to continue and the pair should test the important support at 1.1140. The first resistance is the level of 1.1242, and the more important ones are at 1.1350 and 1.1400. The economic news that investors will be keeping an eye out for this week is the announcement of the US Gross Domestic Product on Thursday at 12:30 GMT.

USD/JPY

Current level – 106.85

The currency pair still cannot get out of the narrow range (107.11-106.65) in which it has been trading for the past several days. However, the forecast is for a downward movement and a test and breach of the lower border of the range, namely the support at 106.65, followed by a test of the main support at 106.00. The first important resistance is found at 107.60.

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.