Daily Technical Analysis

EUR/USD

Current level – 1.2257

The resistance around 1.2340 is coming from the weekly time frame and, as expected, there was profit-taking as sellers entered the market around that zone. The support zones at around 1.2310 and 1.2270 were easily breached and, after the end of the current consolidation, bears might try to take the market down to 1.2200 or 1.2160. Due to the significant role that the level of 1.2340 plays, there might be a deeper pullback or a range phase looming on the horizon. The support zones that are expected to attract buyers’ attention are found at 1.2160 and 1.2070. Market sentiments remain bullish and even sharper and deeper drops towards 1.1915 could be interpreted as an opportunity for better entries for the bulls. Today, the most expected and exciting events in the economic calendar are the non-farm payroll numbers and the unemployment rate data both due at 13:30 GMT.

USD/JPY

Current level – 103.82

Buyers aggressively entered around the support zone of 102.60-102.70 and easily managed to breach the local resistance zones. As the rally nears 104.03, its velocity is expected to diminish. The pair is still in a downtrend and only a lasting hold above 104.03 could be a sign for a change in sentiments. The bearish scenario here includes a small range happening at the current levels, which could cause the market to roll over and the bears to attempt a new charge towards the low at 102.69. If the bears fail to breach the low level, the market could head towards 104.58, where sellers could take advantage of better market entry opportunities.

GBP/USD

Current level – 1.3558

At the time of writing this analysis, the market is hovering around the 1.3560 support. Expectations are for this support to fail, if bears make another attempt to take down the market. Their first target could be the support zone at 1.3440 or at 1.3380. Despite the recent sell-offs, sentiment remains unchanged and the bullish bias prevails. The resistance at 1.3700 is coming from the larger time frames and it’s possible that the market will make a pause or go for a deeper pullback. If that zone gets taken out, the next target for the pair could be 1.4000.