Daily Technical Analysis

EUR/USD

Current level – 1.1232

Trading continues without clear direction, as yesterday’s bearish attempt was limited to the area above 1.1200. Bears might try again to overtake the zone 1.1240-1.1200, and also reach the support zone at 1.1140. Should this be the case, an aggressive entry of the bulls and a quick bounce of the prices above 1.1240 could be interpreted as a signal to an end of the complex pullback and revival of the bullish trend. With rising geopolitical tensions and dire economic expectations, investors might favor the US dollar and the current formation could happen to be a trend reversing formation, with first supports being 1.1140 and 1.1000. The failed peak at 1.1350 could signal both lack of buyers’ confidence or just that they are not ready to go yet and breach the resistance at 1.1400. Today, the most anticipated news is the initial jobless claims numbers for the US at 12:30 GMT.

USD/JPY

Current level – 106.70

Yesterday, USD/JPY managed to breach the lower border of the range at 107.20 and currently prices are heading towards the local support 106.55. During the entire sell-off from 109.75 to 106.55 the presence of the bulls was hardly noticed and this could favor another wave of sales breaching 106.55. There might be a test of 107.20 to confirm the breach. If bulls are unable to take over the support at 106.55, a slowdown of price action and another range is quite possible. Bullish scenario for the moment would be only possible if prices return above 107.50.

GBP/USD

Current level – 1.2523

The sterling is experiencing hardships in the zone 1.2610-1.2660, as in the previous day it struggled to find direction and prices consolidated around 1.2550. Currently the expectations are in favor for the bears with first support being 1.2500, followed by 1.2360. Intraday resistance zone is 1.2610-1.2660. Today, markets are expecting the Bank of England interest rate decision (11:00 GMT) that could spark market activity.