Daily Technical Analysis

EUR/USD

Current level – 1.2083

During the past trading session, the single European currency lost quite a bit of its value against the U.S. dollar and the pair tested the support level at 1.2064. Expectations are for this level to limit the corrective movement and for the bulls to re-enter the market, targeting the resistances at 1.2100 and at 1.2148. In the opposite direction, a breach of the support at 1.2064 could lead to a move towards 1.2028. This week, investors will be expecting the announcement of the unemployment change data for Germany (Tuesday; 08:55 GMT), the ADP non-farm employment change for the U.S. (Wednesday; 13:15 GMT), and especially the non-farm payrolls change, again for the U.S. (Friday; 13:30 GMT).

USD/JPY

Current level – 106.58

At the time of writing this analysis, the currency pair is testing the resistance at 106.63 after we initially witnessed a strong upward movement and a breach of the important support level at 106.02, which can now be considered as a support zone. Should the rally be limited by the resistance at 106.63, then the USD/JPY could make a corrective movement towards the support at 106.02 and even go further down in order to test the level at 105.30. However, the expectations are for the currency pair to breach the resistance at 106.63 and to attack the next resistance level at 107.02.

GBP/USD

Current level – 1.3982

During the past week, the upward trend was limited by the resistance level at 1.4179 and we witnessed a deep correction, which allowed the pair to climb towards the support level at 1.3926. At the time of writing, the GBP/USD is failing to breach this level, which could be considered as a signal for the continuation of the upward movement – towards the resistance at 1.4083. The first important support lies at 1.3920. Today, high volatility can be expected around the announcement of the PMI data and the mortgage approvals data for the U.K. at 09:30 GMT.