Daily Tecnical Analysis

EUR/USD

Current level – 1.1996

Yesterday’s meeting of the U.S. Federal Reserve raised the value of the dollar against the euro by about one figure. The pair managed to breach the key support at 1.2100 as the sell-off quickly reached the next support zone at around 1.1980. It is likely that the market will enter a pullback phase and its depth will confirm or refute the strength of the bears. The 1.1980 support comes from a higher time frame and is expected to withstand bearish pressure for the time being. The next such zone is 1.1880. The first resistance zone is 1.2100, followed by 1.2130. High volatility is also likely to continue today, with major events on the calendar being the European Consumer Price Index (09:00 GMT) and the initial jobless claims data for the United States (12:30 GMT).

USD/JPY

Current level – 110.64

The Ninja breached the local resistance at 110.11 and again reached the high from the beginning of April – 110.80. The market is expected to retrace some of the movement, but the support at 110.11 should not be violated. The resistance at 110.80 comes from the higher time frames and it will take more time for the market to break through. The realisation of such a scenario would open the way for the pair towards the next zone at around 111.70.

GBP/USD

Current level – 1.3987

The market sentiment worsened after the unsuccessful breach of the support at 1.4101, but despite this, the Cable did not reach the level at 1.4000. A scenario, in which the pair returns in the range of 1.4100 – 1.4177 before having its future direction confirmed can not be ruled out just yet. However, if the bears manage to suppress the pair below 1.4101, then we will most likely witness a test of the support at 1.4000.