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

EUR/USD

Current level – 1.1130

After the strong rally, the price lost momentum and the upward movement was stopped by the resistance level at 1.1200. The EUR/USD managed to reverse back to important support levels at 1.1110, however the expectations for a second test of the resistance at 1.1200 during the next few sessions are still valid. If the price manages to overcome the aforementioned resistance, we could see the momentum increase towards 1.1300. On the other hand, the most important support remains at 1.1000 and only if broken, the sentiment is likely to change. This week more significant moves can be expected around the release of the CPI data from the EU on Wednesday (10:00 GMT) and GDP figures from the US on Friday (13:30 GMT).

USD/JPY

Current level – 109.35

The resistance level at 109.68 managed to hold and push the price back to the support at 109.20. Expectations are for a second test and a breakthrough of the resistance levels, which would make 110.50 the next possible target. Important support level remains at 108.90, which, if broken, will push the price back to the consolidation levels from last week. More significant moves can be expected on Thursday (03:00 GMT) when BOJ Interest Rate Decision will be announced, also the US GDP coming on Friday (13:30 GMT)

GBP/USD

Current level – 1.3386

After the volatility from last week, the pair is stabilizing above the support level at 1.3300. The sentiment remains positive with expectations being for a test of 1.3500, which, if broken, would increase the momentum toward the 1.3600 level. Although the election results are now clear, volatility can be expected as important details regarding the UK leaving the EU will be announced. The main support for this rally remains at 1.3100.