Daily Technical Analysis

EUR/USD

Current level – 1.1841

The EUR lost some ground against the USD yesterday. The support level at 1.1883 was easily violated, but the following dip of the currency pair was limited to the next support zone at 1.1837. If the bearish push persists, a breach of this level is likely and could pave the way to the lower border of the trading channel 1.1770 – 1.1940. This would strengthen the negative expectations for the future path of the EUR/USD. If the zone at 1.1837 holds, the first target for the bulls would be an attempt to overcome the former support, now a resistance – the level at 1.1883 and a new test of 1.1940 and 1.1993. Today, volatility can spike around the announcement of US Initial Jobless Claims (12:30 GMT) and the ISM Non-Manufacturing Index (13:45 GMT).

USD/JPY

Current level – 106.18

Тhe breach of the level at 105.93 was confirmed and the price bounced, consolidating around the current level at 106.18. If the buyers remain in control, a continuation of the positive move and a test of the resistance zone at 106.44 are rather possible. Only a successful violation and test of the next level at 106.94 will improve the expectations for future dollar gains against the yen. If bears re-enter the market, they could head the currency pair towards an attempt to breach the support zone at 105.93 and, if successful, could encourage a deeper move towards the lower target – the support zone at 105.28.

GBP/USD

Current level – 1.3334

At the time of writing the Cable is trading just under the resistance zone at 1.3350 and a new bearish impulse is highly possible. This move could easily head the price towards a test of the support level at 1.3217 and could deepen the negative move that started in the beginning of the month. If bulls prevail, a test of the aforementioned resistance zone could be expected and, if successful, could head the GBP/USD in the positive direction, leading to a test of the local high at 1.3465.