Daily Tecnical Analysis

EUR/USD

Current level – 1.1685

The downward movement of the currency pair was limited by the support zone at 1.1670 after two unsuccessful tests of this level. The forecasts are for the downtrend to continue and for the pair to head towards a test of the psychological level at 1.1600. However, only a breach of the support at 1.1670 would pave the way for the EUR/USD towards this zone. On the other hand, before a possible attack from the bears is to commence, it is possible for the pair to make a corrective move and test the resistance at 1.1708 and the trading activity in the range of 1.1670 – 1.1708. If the resistance level at 1.1708 is breached, the corrective movement may deepen, which could head the EUR/USD towards the next resistance at 1.1766. Today, no important economic news is going to be announced, thus a moderate volatility is expected, which may hold the pair in the aforementioned range.

USD/JPY

Current level – 109.85

The currency pair continued to rise yesterday, and the dollar gained more momentum after the final interest rate decision from the Fed minutes became clear. The bulls are likely to again attack the resistance zone between 110.30 and 110.52. This area turns out to be quite a difficult obstacle for the buyers, but if a breach here is successful, prices can rise to 111.65 and even 113.50. The first daily support for the bulls is 109.73, and the main one remains the area at around 109.22.

GBP/USD

Current level – 1.3631

The sell-off from the past few days has gained momentum as the pound continues to lose ground against the U.S. dollar from the beginning of today’s trading session. The breach of the 1.3723 support zone strengthened the bearish sentiment and the most probable scenario for today is for an attack on the support at 1.3600. A successful breach of the mentioned level could pave the way towards the first support zone from the higher time frames at around 1.3500.