Daily Technical Analysis

EUR/USD

Current level – 1.1808

The currency pair is consolidating above the support zone at 1.1776 and a push of the bulls could easily lead to a test of the resistance zone at 1.1903. If they are successful, the EUR will most probably renew its positive run against the USD. If bears prevail, a new attempt for a violation of the aforementioned support zone can be expected and, if it is indeed violated, this would pave the way to the next support at 1.1694. If this proves to be the case and momentum increases, we might see the pair dip to the lower zone of support at 1.1583. Today, traders and investors alike will focus on the US ADP Nonfarm Employment (12:15 GMT) Change and the ISM Non-Manufacturing Index (14:00 GMT). А pickup in volatility is expected after their announcement.

USD/JPY

Current level – 105.54

Yesterday, the USD/JPY lost some ground and, at the time of writing, the currency pair is about to test the support zone at 105.55. Breach here could lead to a deeper decline, heading to the next level at 104.88 and possibly 104.22, a violation of which would strengthen the bearish expectations for the future. If the support zone stops the decline, а new test of the resistance level at 106.15 will be the more probable case, but only a breach of the next target at 106.71 will show that the current market sentiment is changing

GBP/USD

Current level – 1.3081

The test of the support zone at 1.3002 was not successful and the Cable held positions, continuing its trade in the 1.3002 -1.3133 channel. A positive push and a violation of the resistance level at 1.3113 is currently more likely and this could lead to new gains for the GBP towards 1.3250. If the bears take control and they violate the support zone at 1.3002, the GBP/USD could easily head for a test of the targets at 1.2950 and 1.2898. If the aforementioned do not hold, the sell-off might deepen towards the important 1.2758. Volatility might spike after the announcement of the UK PMI Services data at 08:30 GMT.