Forex Technical Analysis: EUR/USD, USD/JPY, GBP/USD

EUR/USD

Current level – 1.1132

The US dollar sharply devalued against the euro in the aftermath of FED’s decision to keep interest rates unchanged and the signals that they will neither tighten, nor ease through 2020.The pair continues to gain ground after it violated the resistance level at 1.1109 and is preparing to test the next resistance at 1.1139. First support is 1.1066. Higher volatility is expected around 12:45 GMT time when the ECB interest rate decision is to be announced, during and after Lagard’s press conference (13:30 GMT) and the results from the elections in the UK (after 22:00 GMT).

USD/JPY

Current level – 108.52

The sentiment remains negative as the USD/JPY managed to breach below the support at 108.64 and is expected to test the next support at 108.25. In a positive direction, first resistance is at 108.91 and the key one is at 109.70. As there is still no official confirmation or denial on whether the US tariffs against China will take effect on 15 December, any potential signs that this will happen will lead to some volatility. Basically, we will be keeping a close eye on Trump’s twitter account.

GBP/USD

Current level – 1.3192

The second attempt at the important resistance in 1.3175 was successful and the expectations are that the Cable will continue rising towards the zone around 1.3255. In the negative direction, the key support lies at 1.3100. Any news regarding the UK general elections will guide traders’ actions and price spikes and high volatility are highly probable. The election day in the United Kingdom will end at 22:00 GMT and that is when there will be more clarity on who has won. If Conservatives win with more than 10%, the GBP will probably appreciate, despite the fact that a Conservative victory is rather priced in. If Labour wins or there is a hung parliament, the Cable will probably not be able to hold on to the gains from the past couple of weeks.