Daily Technical Analysis

EUR/USD

Current level – 1.1810

The high volatility after the FED announced their new approach to inflation targeting and the initial jobless claims yesterday, did not help neither the bulls, nor the bears to lead the currency pair out of the range between 1.1797 and 1.1845. The tests of both borders failed and the price returned to the current level at 1.1810. Only a successful breach of the resistance zone 1.1845 and violation of the next target zones at 1.1903 will show that the market participants are becoming increasingly bullish and lead to future gains for the EUR/USD. If bears overcome the important support level at 1.1797, that could lead to a dip and a test of the lower zone at 1.1724. A break through this level would easily deepen the negative move and strengthen the expectations for future losses.

USD/JPY

Current level – 106.68

The bulls re-entered the market yesterday and the dollar gained some positions against the yen as the resistance zones at 106.13 and 106.41 were breached. A continuation of the positive move and a test of the target at 106.93 are highly probable later on today, and if successful, could easily help the currency pair to test the next resistance zone at 107.20. Any potential pullbacks should be limited to the level at 106.41, or the following zone at 106.13, if momentum increases. Deeper declines towards the support at 105.72 would show change in the current sentiment.

GBP/USD

Current level – 1.3218

The Cable continues to trade near the important resistance level at 1.3247. The positive expectations of the market participants are still intact and could lead to a new test of the aforementioned level. If this level is violated, a more bullish picture will be drawn and attempts for a violation of the next targets – the resistance levels at 1.3350 and 1.3510 will become more probable. If the zone at 1.3250 holds, the first hurdles for the bears can be found at the support zones that lie at 1.3131, followed by the one at 1.3081.