Daily Technical Analysis

EUR/USD

Current level – 1.2254

The bearish retracement was short-lived and the pair continues to hold positions at 1.2254 at the time of writing. A further decline towards the support zone at 1.2206 is still not out of the question and, if the pair violates the aforementioned level, the next target will be 1.2161. If bulls remain in control of the market, the most probable scenario for today will remain an attempt to breach the resistance zone at 1.2270. If the buyers are successful, the bullish case for an attack of the levels around 1.2309 will be reinforced. This week, traders will be focusing on the ISM manufacturing data for the U.S. (Tuesday at 15:00 GMT), CPI data for the EU (Thursday at 10:00 GMT), as well as on the non-farm payrolls and unemployment rate data, again for the U.S. (Friday at 13:15 GMT).

USD/JPY

Current level – 102.98

The bears continue to reign supreme as the dollar continues to lose ground against the yen. At the time of writing, the currency pair is once more testing the major support level at 103.01. A breach of this level could easily lead the USD/JPY towards the lows at around 101.00. If the aforementioned level holds the negative impulse, the first target for the bulls could be the resistance zone at 103.27, but only a successful violation of the next target at 103.72 could change the current market sentiments and strengthen the positive expectations for the future path of the Ninja.

GBP/USD

Current level – 1.3675

The positive sentiment remains intact as the GBP/USD rally continues. The price went through the resistance level at 1.3668 and, if the breach is confirmed, a continuation of the euphoric rally will remain the most probable scenario. A retracement is not currently out of the picture, but if such develops, it should be limited to the support zone at 1.3620. However, if the mentioned level does not hold, the sell-off might deepen towards the next support level at 1.3539.