Daily Technical Analysis

EUR/USD

Current level – 1.2153

The pair is holding above the local support at 1.2137 and is forming a small consolidation at the time of writing the analysis. This can be interpreted as an early sign for a market move and an upcoming breach of the resistance at 1.2174. If that zone is breached, the next target for the rally would be found around the 1.2240-1.2270 zone. The daily support remains at 1.2137 and the major one is found at around 1.2080. Market sentiment is bullish, while today’s most awaited event is the FOMC meeting (19:00 GMT) and the following press conference (19:30 GMT).

USD/JPY

Current level – 103.59

The breach of the support zone at 103.72 has been confirmed and prices are now heading towards the previous local low at 103.49. Expectations are for the dollar’s weakness to persist and it’s likely for the pair to test the next support zones at 103.26 and at 102.20. The trend hasn’t gained momentum yet as there are deep pullbacks. However, if the level of 103.26 is violated, bears would tighten their grip and a wave of sell-offs could occur. First resistance zones for the bulls are found around 103.72 and 104.03.

GBP/USD

Current level – 1.3439

The sterling posted strong two-day, back-to-back gains, with prices now heading towards the resistance at 1.3500 and having a real chance of breaching it. Buyers are counting on a last-minute trade agreement between the UK and the EU, as well as on a weakened dollar. With the deadline looming on the horizon, in the last two weeks before Brexit the political stage is set to overshadow the fundamentals and volatility is to remain elevated. First support for the bulls is found around the zone of 1.3390, followed by the one at 1.3310-1.3290.