Daily Technical Analysis

EUR/USD

Current level – 1.2176

The single European currency lost ground against the U.S. dollar after the support levels at 1.2270 and 1.2206 were easily breached. The next level that is expected to be attacked by the bears is the area around 1.2160. This move can be considered as corrective and is carried out in order for the bulls to find better market entry levels. The main economic news for this week that would be of interest to investors is the data on industrial production for the eurozone (Wednesday; 10:00 GMT), the data on the core CPI for the U.S. (Wednesday; 13:30 GMT), as well as the data on retail sales for the U.S. (Friday; 13:30 GMT).

USD/JPY

Current level – 104.13

The U.S. dollar managed to gain quite a bit of momentum during the last trading session and this positive move is also present today. The bulls are about to attack the level of resistance at 104.25, where it is quite possible for them to be thwarted by the bears. This, in turn, could help the bears find better levels to enter the market around the mentioned level and push the movement in a negative direction once again in order to reach the support zone at around 102.70.

GBP/USD

Current level – 1.3505

The Cable managed to breach the support level at 1.3560 at the beginning of the trading session and left the narrow channel of 1.3560 – 1.3620. The next goal for the bears would be a test of the support level at 1.3440 as a successful breach here would encourage the bears to also attack the levels at around 1.3211. In the positive direction, the first significant resistance is the level of 1.3620.