Daily Technical Analysis

EUR/USD

Current level – 1.2162

Over the past week, we have witnessed an appreciation of the single European currency against the U.S. dollar to the level of 1.2188 after the successful breach of the resistance at 1.2141. At the time of writing this analysis, the EUR/USD is trading in the narrow range between 1.2145 – 1.2180. If the bulls manage to hold onto their positions, the currency pair will head towards the resistance zone at 1.2221. In the negative direction, the first hurdle for the bears is the support at 1.2097. A breach of this level could pave the way for the currency pair towards the next target – the level of 1.2062. The main economic news for this week that would be of interest to investors is the data on the consumer confidence for the U.S. (Tuesday; 15:00 GMT), the Fed’s interest rate decision (Wednesday; 19:00 GMT), the final GDP Q4 data for the U.S. (Thursday; 13:30 GMT), the data on new home sales for the U.S. (Thursday; 13:00 GMT), as well as the data on the unemployment rate for Germany (Friday; 09:00 GMT).

USD/JPY

Current level – 103.82

The currency pair is trading under the support level of 103.89 and the expectations are for the U.S. dollar to continue its depreciation against the JPY. A successful breach of the support at 103.27 would confirm the downtrend and the currency pair should attack the support zone at 103.01. If the support at 103.53 manages to limit the downward movement, then it is possible for the USD/JPY to enter the range between 103.53 – 103.89.

GBP/USD

Current level – 1.3682

The sterling has continued to appreciate against the U.S. dollar, reaching the level of 1.3743, but the bears prevailed and the currency pair could not hold its positions above the resistance at 1.3700. The expectations are for a continuation of the uptrend and for a new breach of this level, which should lead to an appreciation of the sterling towards the local high at 1.3743. In the negative direction, the first support is found at the level of 1.3620. Higher volatility can be expected around the announcement of the data on the claimant count unemployment rate and of that on the average monthly earnings for the UK (Tuesday; 07:00 GMT).