Daily Tecnical Analysis

EUR/USD

Current level – 1.1863

The bulls failed to breach the resistance at 1.1890 and the bears, in turn, sank the euro under the support of 1.1853. The pair is expected to test the support at 1.1824, where buyers will have a chance to re-enter the market at better prices. If this support does not withstand the bearish pressure, a decline towards 1.1770, and even 1.1700, is possible. Expectations would become bullish only if there is a breach above 1.1890. Today, an increase in activity can be expected around the announcement of the initial jobless claims for the United States at 12:00 GMT.

USD/JPY

Current level – 109.65

After a false signal for a breach of the 109.04 support, the bulls became active around the support zone at 108.70 and managed to breach the resistance at 109.33. It is possible for the bears to try and attack the 109.33 zone again, but a non-violation here can be considered as an early signal for a reversal of the direction of the market. If the rally continues, it is possible for the bulls to head towards the resistance at 110.37.

GBP/USD

Current level – 1.3886

The pair is still unable to continue the rally and prices are consolidating between the support at 1.3884 and the resistance at around 1.3930. The market may need a catalyst before it could activate and move in a clear direction. Today is the decision of the Bank of England on interest rates and it is expected to lead to increased activity at 11:00 GMT. It is possible that the prices will breach the support of 1.3884 and move towards 1.3826. This would offer a better entry level for the bulls, but if they decide to return to the market, it would be desirable for prices to return above 1.3884 in order to maintain the integrity of the trend. If that isn’t the case, we would instead witness an early phase of a downtrend.