Daily Technical Analysis

EUR/USD

Current level – 1.1872

The pair continues to trade in the range between 1.1830 and 1.1890. Expectations are still positive, for a new charge towards 1.1890 where a potential breach could take trading to the psychological level of 1.2000. Daily support for the bulls could be expected at around the 1.1830 level. The strength of the bears at around 1.1890 seems to be diminishing but, if they decide to re-enter the market, sell-offs should remain limited in the zone between 1.1830 and 1.1760. Such a scenario would give the bulls an opportunity for better entries and, potentially, higher momentum should a breach of 1.1890 occur. Today, a series of preliminary PMI data is expected from the Eurozone (09:00 GMT) and the U.S. (14:45 GMT) that could lead to spikes in volatility around those hours.

USD/JPY

Current level – 103.74

The market paused above the 103.72 level, which for the moment is acting as local support. Bulls aren’t looking quite interested in that level, which could otherwise be easily breached, exacerbating the sell-offs towards the lows at around 103.20. Bears are still in control, however, if the bulls decide to enter the market, a pullback should remain limited in the zone between the resistances 104.18 and 104.43. Such a scenario would cause a more complex retracement phase and would lead to better entry opportunities for the bears.

GBP/USD

Current level – 1.3318

Investors have welcomed the news that the UK and Canada have reached a post-Brexit trade agreement during the weekend. The Cable has breached the resistance zone between 1.3275 and 1.3300 and a rally towards 1.3380-1.3400 is expected. The first daily support for the buyers is 1.3275. Positive flash PMI data from the UK (09:30 GMT) would improve buyers’ sentiment. The breach is not confirmed yet, so a potential pullback towards the 1.3275 zone should be handled with caution.