Daily Technical Analysis

EUR/USD

Current level – 1.1866

Yesterday, the pair managed to form a bottom as buyers found support in the zone between 1.1800-1.1820. The weakness of the US dollar is expected to continue and, following the bears’ aggressive entry at 1.1950 we might see a longer consolidation or a deeper pullback. The main support level remains around 1.1700 and intraday ones are at 1.1860 and 1.1800. In order to continue the trend, bulls would have to overcome the resistance at 1.1950. Today, a series of preliminary PMI data is expected across Europe and the United States and the news could spike volatility or even spark breakouts in the last trading day of the week.

USD/JPY

Current level – 105.68

The pullback of USD/JPY remained limited below 106.13, however bears weren’t as confident and aggressive as in their previous run. This suggests a few possible scenarios for the development of the market. The pair could form a second low around the support zone 105.20-105.45 and because of the slow move from 106.13, the market would be in a state of divergence and bulls might take their chance to turn around the trend with targets at 106.40 and 107.00. On the other hand, a new low might mean that bears don’t like these prices that much and will look for better entries above 106.13, so they can take out 105.20. The third option would be if the bears gain traction and breach 105.20-105.45 with a single push, then 104.23 could be considered as their target

GBP/USD

Current level – 1.3226

The sterling performed nicely yesterday and finished the day in the green. Bulls found the expected support around 1.3080. Expectations remain positive and a breach of 1.3250 seems possible with a daily target around 1.3300. If, however, bulls fail to overtake 1.3250, the consolidation would continue to develop and the market could wait for an event that could spark a big move. Intraday supports lie around 1.3140 and 1.3080.