Daily Technical Analysis

EUR/USD

Current level – 1.1626

The bulls failed to gain enough momentum and the upward move was limited at the 1.1668 resistance zone. At the time of writing, the currency pair is just above the support level of 1.1623, and this time, the bears could gain enough strength for a successful breach of that level. An unsuccessful breach, on the other hand, could form a short-term range between 1.1632 – 1.1668. Today, the data on the preliminary manufacturing PMI for the euro area (08:00 GMT) could affect the volatility of the market.

USD/JPY

Current level – 113.98

The situation for the Ninja remains unchanged, with positive sentiment prevailing at the moment. At the time of writing, the currency pair is trading under the support level of 114.42. A withdrawal from the local high at the mentioned resistance and a possible bear predominance can still be expected. The latter, however, should remain limited above the support of 112.98, at which point investors could find better levels for market entry. If the positive sentiment of the investors is confirmed, the first significant resistance after the mentioned local high would be the level of 115.50.

GBP/USD

Current level – 1.3788

In the last few trading sessions, we have noticed a slowdown in the rally as, at the time of writing the analysis, the currency pair is trading above the support level of 1.3762. The main resistance of 1.3829 has so far managed to withstand the pressure of the bulls twice already, but the expected third attempt may be successful and we may witness the resumption of the trade in the range between 1.3800 – 1.4000. The retail sales data for the UK (today; 06:00 GMT), as well as the preliminary manufacturing PMI and the preliminary PMI services for the UK (08:00 GMT), could be the main factors leading to an increased volatility for the currency pair today.