Daily Technical Analysis

EUR/USD

Current level – 1.1831

Buyers seem to be losing strength around 1.1845, however the lack of new, lower lows shows that sellers are not ready to take the initiative either. The expectations remain bullish and first support can be expected around 1.1800. The higher time frame support which can be considered as more reliable is at 1.1720. Bears might make one last attempt and, if they fail to push to lower lows, a potential scenario could be the formation of a small range around 1.1845, followed by a breakout with target around the resistance at 1.1945. Today, we are expecting a busy economic calendar with the US GDP and initial jobless claims to be announced at 12:30 GMT. The news is followed by an announcement of the chairman of the Federal Reserve at 13:10 GMT. There might be a spike in volatility and the news could be the needed catalyst for the market to find direction.

USD/JPY

Current level – 106.01

Bulls met serious resistance around 106.40-106.50. US dollar losses are expected to continue as the potential target for the bears is around 105.45. As long as the pair is trading below 107.20, bearish sentiment is expected to prevail.

GBP/USD

Current level – 1.3201

Since the beginning of the month, the pair has been trading horizontally between 1.3000 and 1.3250. The dollar weakness could assist the sterling to reach new highs, however it looks like a catalyst for a move in either way is needed. Today’s news, mentioned in the analysis for EUR/USD, could be the needed spark. Bulls can expect first support around 1.3130, and the more reliable one is the bottom of the range at 1.3000. If there is a breach of 1.3250, it’s desirable for prices to remain above it, otherwise a faker could give the bears a chance for a larger sell-off. If bulls succeed, the next resistance zones are at 1.3350 and 1.3510.