Daily Technical Analysis

EUR/USD

Current level – 1.2133

The bulls still control the market, despite the fact that we witnessed a slight correction in the negative direction, which was limited down to the support level at 1.2123. The forecast is for a continued depreciation of the U.S. dollar, which would strengthen the bullish sentiment, with a major resistance for the bulls being located at 1.2174. The most important economic news during the week that could have an impact on investor’s mood is the ECB interest rate decision (Thursday from 12:45 GMT), the consumer price index for the U.S. (again on Thursday from 13:30 GMT), as well as the U.S. producer price index (Friday from 13:30 GMT).

USD/JPY

Current level – 103.94

The currency pair failed to overcome the resistance at 104.25 and a new attempt to attack the main support at 103.72 is currently in progress because of the continued depreciation of the dollar. A breach of the mentioned support will strengthen the bearish sentiment, which could lead the price action towards testing the next support at 103.20. In a positive direction, only a confirmed violation of the resistance at 104.50 could be a sign of a new bull run.

GBP/USD

Current level – 1.3420

The breached resistance at 1.3500 was not confirmed, leading to a sell-off which is currently limited to the support level of 1.3390. Positive news regarding the Brexit talks could give the bulls an additional incentive to re-test the main resistance at 1.3500. In a negative direction, if the bears manage to tip the scales in their favour, we can expect a move through the support zone at 1.3390 which, in turn, could resume the range-bound movement in the narrow channel of 1.3290 – 1.3390.