Daily Technical Analysis

EUR/USD

Current level – 1.1841

The resistance zone at 1.1892 successfully held the bulls during yesterday’s session after the better-than-expected PMI data for the U. S. The correction was limited around the support level at 1.1827 and, in the early hours of today, the pair is trading above the mentioned support, with a minor consolidation developing at around 1.1842. However, a new attempt at breaching 1.1827 is not excluded, but only a violation of the lower support zone at 1.1761 could change the current market sentiment and lead to a more continuous sell-off. If bulls manage to remain in control and breach the resistance zone at 1.1892, they could easily lead the EUR/USD towards the 1.2000 level. During today’s session, volatility could pick up at 09:00 GMT when the German IFO Business Climate Index is to be announced and at 15:00 GMT when the data for the U.S. consumer confidence is due.

USD/JPY

Current level – 104.54

The bulls took control during yesterday’s session and the USD/JPY rallied from the support zone at 103.72. The rally aided the successful breach of the resistance zone at 104.18 and the next target at 104.43. If the breach of the latter is confirmed, the pair should head towards the resistance level at 104.85. In the opposite direction, while a corrective move may develop, it should be limited to the level of 104.18, which is now acting as a level of support.

GBP/USD

Current level – 1.3325

The Cable was not able to breach the psychological level at 1.3394, but, at the time of writing, the pair is holding above the support zone at 1.3302. A continuation of the rally and a test of the aforementioned resistance zone currently remains the most probable scenario. Successful violation could help strengthen the positive expectations for the future path of the currency pair and pave the way towards the 1.3480 level. A violation of the support at 1.3302 and the one at 1.3275 could lead to a deeper correction towards the 1.3225 level.