EUR/USD
Current level – 1.1414
After an unsuccessful attempt by the bulls to take over the 1.1440 level, the market seems to be entering a retracement phase that should remain limited above the support zone at 1.1330. During the last week, buying pressure gained traction and the current pullback could be short-lived. Expectations remain positive, for a second breakthrough attempt at 1.1440 and, if bulls prevail, their next target would be 1.1500, followed by 1.1560. The key support zone coming from the larger time frames is 1.1260. Currently buyers are in control of price action and a bearish scenario would be possible if prices fall below the support at 1.1192. Today, higher volatility can be expected around the announcement of the CPI data series for the Eurozone (09:00 GMT) and the U.S. building permits release (12:30 GMT).
| Resistance | Support | ||
| intraday | intraweek | intraday | intraweek |
| 1.1400 | 1.1500 | 1.1370 | 1.1285 |
| 1.1440 | 1.1560 | 1.1330 | 1.1240 |
USD/JPY
Current level – 106.83
The support around 106.80 proved to be reliable as prices bounced from that level again. The pair formed a nice double bottom and the market showed divergence. There is a possibility for a shift in market expectations and now buyers have a chance to charge towards the resistance at 107.46 which, if taken over, could clear the way for the next targets of 107.70 and even of 108.00. Intraday support lies at around 107.16, however, short-term swings below this level are possible.
| Resistance | Support | ||
| intraday | intraweek | intraday | intraweek |
| 107.46 | 108.15 | 107.16 | 106.40 |
| 107.70 | 109.35 | 106.80 | 106.00 |
GBP/USD
Current level – 1.2579
The pound rally faded as the market switched to ranging mode, locked between 1.2520 and 1.2660. Intraday support is the bottom of the range at 1.2520, while the key support that can sustain the trend is found at 1.2450. Minor resistance here is 1.2600 and, if its breached, another test at 1.2670 could be on the table. The price action formation that we currently see is of higher complexity, but is still bullish-biased. A short consolidation at around 1.2600 would be a sign that buyers are still present on the market and a breach can be expected. On the other hand, if bulls fail once again to overtake the resistance at 1.2670, that would be a worrisome signal for a potential rollover of the current trend.
| Resistance | Support | ||
| intraday | intraweek | intraday | intraweek |
| 1.2660 | 1.2780 | 1.2525 | 1.2370 |
| 1.2730 | 1.2800 | 1.2460 | 1.2310 |
