Daily Technical Analysis

EUR/USD

Current level – 1.2247

The dollar continues to depreciate, with the single European currency trying to breach the resistance level at 1.2300, albeit unsuccessfully. The bears managed to hold their ground and limited the appreciation of the euro to just below 1.2270. However, the sentiments remains positive – for overcoming the mentioned resistance and for a test of the next level at around 1.2400, followed by a move towards 1.2500. During the last trading session for this week, no economic news that would cause significant market fluctuations are present in the economic calendar. However, investors are still focused on the U.S. government’s decision to provide additional fiscal stimulus.

USD/JPY

Current level – 103.36

The Japanese yen continued to appreciate against the retreating U.S. dollar, reaching levels of 102.85 during the last trading session. However, the breach of the support at 103.00 was not confirmed due to the subsequent corrective move, which would most likely be limited to the resistance level of 103.72. Negative sentiments remain intact, with the most likely scenario being a move towards the support level at the not-so-distant level of around 101.00.

GBP/USD

Current level – 1.3529

The appreciation of the Cable was halted at the 1.3618 resistance level, while the follow-up corrective phase will most likely be limited to the level of the first support at 1.3500. The sentiment remains positive, for another test of the resistance zone. On the other hand, a negative scenario for the pound can not be yet ruled out, should the negotiations between the EU and the United Kingdom take a turn for the worse.