Daily Tecnical Analysis

EUR/USD

Current level – 1.1899

The euro failed to recover against the U.S. dollar and, at the time of writing, the price is nearing a test of the support at 1.1846. It is likely that the decline for the pair will continue and, if the support is violated, the next one is expected to be found at around 1.1700. The presence of buyers is not very noticeable and the possibility of a double bottom formation at the support seems minimal. The first resistance for the buyers is the area between 1.1880-1.1904, and the next one sits at 1.1955. Today, we expect an influx of economic news that will likely increase market activity – a series of data on the business activity in the euro area (08:00 GMT) and the United States PMI data (14:00 GMT), as well as a report on the initial jobless claims for the United States (12:30 GMT).

USD/JPY

Current level – 110.46

At the time of writing, the market is managing to stay above the support at 111.01 but, as the day progresses, a pullback move towards the support at 110.74 could be expected. The main support for a potential future rally is found at 110.43. If the bulls are unable to push above 111.01, it is likely that the market will remain without a clear direction and that the trade will fluctuate between 110.43 and 111.01.

GBP/USD

Current level – 1.3850

The Greenback is holding its gains against the sterling and prices are facing a test of the key support at around 1.3800. During the corrective phase, sellers managed to build several resistance zones at around 1.3870, 1.3930, and 1.3980. In case the 1.3800 support is breached, new losses can be expected for the pair and probable targets could become 1.3655 and 1.3560. An increase in volatility can be expected today around the news, mentioned in the EUR/USD analysis, as well as after the announcement of the business activity index for the UK scheduled for 08:00 GMT.