Daily Tecnical Analysis

EUR/USD

Current level – 1.1845

The Federal Reserve left the rates unchanged and, after a rather lack-lustre press conference which did not spark a lot of volatility, the bulls continued to prevail. The greenback lost some ground against the common european currency and, during the early hours of today`s trading, the pair is hovering under the resistance zone at 1.1849 as a direct result of the Fed signalling for a continuation of its dovish monetary policy. A Successful breach of the mentioned level could continue the rally and would easily pave the way for a test of the next target at 1.1879. If the bears enter the market, we could witness a move towards the first support at 1.1805 which, if violated, could deepen the sell-off towards the major support at 1.1759.

USD/JPY

Current level – 109.69

The short-lived rally was limited to the resistance zone of 110.09 and the yen regained some of its positions against the dollar as a result of the Fed’s forward guidance and interest rate decision. The expectations are for a test of the support zone at 109.57 which, if successful, should lead to a move towards the local lows at around 109.30. This, in turn, could easily strengthen the negative expectations for the future path of the USD/JPY. The first target for the bulls is still the mentioned resistance level at 110.09, followed by the one at 110.30.

GBP/USD

Current level – 1.3905

The recovery for the Cable continues and, during the yearly hours of today, the pair tested the major resistance level at 1.3900. A confirmation of the breach would easily lead to new gains for the sterling against the dollar and would head the GBP/USD towards the level at 1.3970. If the bulls lose momentum, the corrective phase should be limited to the first support level at 1.3800.