Daily Technical Analysis

EUR/USD

Current level – 1.1736

The bears prevailed and the EUR/USD breached the support zone at 1.1791. The negative move, which resulted from the worse-than-expected economic data for the Eurozone, was limited around the support level of 1.1746. If the breach is confirmed, the sell-off could easily deepen and we could see a test of the major support at 1.1700. Successful confirmation of the breach here could easily reinforce the bearish momentum and lead to a test of the major support level at 1.1700, causing further deterioration in market sentiment. In the opposite direction, the first target for the bulls lies at the former support zone, now acting as resistance – the level of 1.1791. Only a breach of this level will put the EUR/USD back on track towards reaching 1.1840.

USD/JPY

Current level – 105.37

The bullish attempt to violate the resistance level at 105.51 was not successful. At the time of writing, the USD/JPY is testing the close support zone at 105.38 which, if broken, could pave the way towards the next target at 105.01 and lead to a further depreciation of the USD against the JPY. If the buyers re-enter the market, they will try to test the resistance zone at 105.51, but only a successful violation of the next targets – 105.77 and 106.02 – could lead to a change in the current market sentiment.

GBP/USD

Current level – 1.2932

During yesterday’s trading session the price dropped, violated the support zone at 1.2990, and managed to reach the targeted level at 1.2913. If the negative move continues, a test of the aforementioned level is expected. A successful breach here could lead to new lossеs for the GBP and push the currency pair towards testing the next support zone at 1.2770. In the positive direction, a bullish retracement towards the resistance zone at 1.2991 can be expected and is the more plausible scenario for today. A violation of this level will strengthen the bullish presence and will pave the way towards 1.3065.