Daily Technical Analysis

EUR/USD

Current level – 1.0847

The euro found the needed support around the level 1.0770 and buyers managed to breach the resistance 1.0830. The greenback is slipping across the board and this could spark a rally towards 1.0900. Should this level be violated, buyers would affirm control over the price action. The next potential target for them would be the resistance at 1.0980 which was formed from the higher time frames. The most significant support for the pair is at 1.0770 and the minor intraday one is 1.0830. If bulls lose momentum below 1.0980, trading might continue in the current range between 1.0770 and 1.0980. Today traders will closely monitor the Nonfarm Payrolls change (NFP) and the news regarding the level of unemployment coming from the U.S. at 12:30 GMT. This data is an important indicator on how strong the US economy is, so a spike in volatility can be expected around the time of announcement.

USD/JPY

Current level – 106.31

Bears re-entered the market as prices tested the resistance around 106.50. Currently sellers hold control over the price action and the most likely scenario is for a second attempt to breach 106.00 and potentially target 105.20. Closest resistance levels for the buyers are 106.50 and 107.00. The pair is also expected to be influenced by the news mentioned in the EUR/USD analysis.

GBP/USD

Current level – 1.2400

The situation with the Cable is identical to the other pairs containing the US dollar as the bulls entered aggressively around the 1.2280 support. The level has significant importance as it’s formed from the higher time frames. If buyers keep up the pressure, there might be a breach of the resistance levels around 1.2430 and 1.2520. Major obstacle for the bulls could be 1.2620 as already a couple of rallies failed to violate that zone. Today sharp moves and a spike in volatility can be expected around the U.S. Non-farm payroll report at 12:30 GMT.