Daily Technical Analysis

EUR/USD

Current level – 1.2108

Yesterday, the bearish move was limited around the support zone at 1.2082, after which the price snapped back towards the resistance at 1.2174. Despite the fact that the pair did not manage to violate the 1.2174 level, the bullish case is still intact and the more likely scenario for today is for a move above the mentioned resistance. If the bears prevail and breach the support at 1.2082, we could see a deeper sell-off towards the 1.1988 level, where bulls are expected to enter the market should this scenario materialise. The ZEW Economic sentiment for Germany and the Preliminary GDP data for the Eurozone, both due at 10:00 GMT, could be expected to spark some volatility.

USD/JPY

Current level – 104.02

The USD/JPY continues to struggle with its attempts to breach the support level at 104.03. In the early hours of today’s trading session, the pair is holding steady above the mentioned level, but a further depreciation of the U.S. dollar against the yen is expected. If 104.03 is violated, the pair will most probably head towards a test of the support zone at 103.72 and, possibly, the 103.20 level, if the move gains enough momentum. If bulls enter the market, their first target will lie at 104.25. A successful violation of this level could lead to an attack of the next resistance level at 104.50.

GBP/USD

Current level – 1.3349

The attempt to breach the support zone at 1.3291 was not successful and the Cable regained some of its positions after a volatile session. Positive news around the Brexit talks and the start of the vaccination efforts in the UK could easily lead to a violation of the resistance level at 1.3390 and a test of the next target at 1.3438. In the negative direction, a breach of the support zone at 1.3291 would pave the way for the currency pair towards reaching the level of 1.3204 and could spell trouble for the future path of the GBP/USD.