Daily Technical Analysis

EUR/USD

Current level – 1.2130

The currency pair failed to breach and stay above the key resistance of 1.2174, but it is expected that, once the consolidation in which the pair is currently found is over, the levels in question will be tested again and consequently breached. In the negative direction, the first important support is found at 1.2082. This week, investors’ attention will be drawn to the Fed Interest Rate Decision (Wednesday; 19:00 GMT) and the data on the Consumer Price Index for the Eurozone (Thursday; 10:00 GMT).

USD/JPY

Current level – 103.98

The small rally of the USD/JPY was limited around the resistance zone at 104.58, after which the dollar started depreciating again and tested the support level at 104.03. A confirmation of a breach here could lead to a deeper sell-off towards the important support zone at 103.72. A successful violation of the aforementioned level will strengthen the negative expectations for the future path of the Ninja. In the opposite direction, the first resistance zone for the bulls lies at the level of 104.25, but only a breach of the next target at 104.58 could lead to change in the current market sentiment.

GBP/USD

Current level – 1.3321

The currency pair continues to trade in the narrow range in which it has been sticking to for the past three weeks. Current forecasts are for a move towards the local low and important support of 103.26. If this level is breached and the pair manages to stay below it, momentum will build up in the negative direction. The first important resistance is located at 104.25. The Bank of Japan’s Interest Rate Decision is expected to be announced on Friday and is forecasted to drive up market volatility.