Daily Technical Analysis

EUR/USD

Current level – 1.1458

During the past week, the European single currency continued to shed from its value against the U.S. dollar. The bulls managed to limit the sell-off slightly above the support level of 1.1420, but it is possible that the decline will continue. The forthcoming test of the resistance zone of 1.1476 could predetermine the future move of the currency pair. A successful breach of the mentioned level may be a prerequisite for an additional appreciation and a test of the next significant level of 1.1537. The announcement of the trade balance data for the euro area (today; 10:00 GMT) could lead to an increase in the volatility of the currency pair.

USD/JPY

Current level – 113.81

The currency pair resumed its range move in the narrow channel between 113.40 – 114.23 after the brief breach of the lower boundary of the channel and the failed test of the support zone of 112.73. At the time of writing, the situation remains rather neutral. However, a test of the support zone of 113.40 is possible. The announcement of the GDP data for Japan (yesterday; 23:50 GMT) couldn’t change investors’ sentiment and, so far, there is no economic news that is expected to affect the volatility of the market throughout the rest of the day

GBP/USD

Current level – 1.3425

Like most of the major currency pairs, the pound also lost ground against the U.S. dollar during last week. The bears lost momentum around the support zone of 1.3360, where the bulls intervened and tested the resistance of 1.3427. The current breach of the mentioned resistance cannot be considered as completed and, in case we do not receive confirmation, the most probable scenario would be for a second reduction and a test of the 1.3360 support area.