Daily Technical Analysis

EUR/USD

Current level – 1.1773

The currency pair tested the main support zone at 1.1780 and, at the time of writing, is trading just under the aforementioned level. Confirmation of the breach is possible and could lead to a steeper drop and test of the next support zone at 1.1700. If this proves to be the case, the market sentiment will turn negative. If the bulls re-enter the market, their first target will be the resistance zone at 1.1841, but only a successful breakthrough of the next target at 1.1877 will encourage buyers to test the local highs at 1.1940 and, possibly, those at 1.1993.

USD/JPY

Current level – 105.91

The USD/JPY lost some ground during yesterday’s trading session and, after the test of the support zone at 106.02, the price hit a hurdle around the current level of 105.91. Further negative moves are possible and could easily head the currency pair for a test of the support zone at 105.28. In the alternative scenario, if the breach is not successful, bulls could take control and head the USD/JPY for another test of the resistance zone at 106.44 and, possibly, 106.94.

GBP/USD

Current level – 1.2952

The sell-off continues for the Cable. The price breached the support zone at 1.3046, reaching the levels from the end of July of around 1.2960. The appreciation of the Dollar against some of the major currencies in recent days could lead to bigger losses for the Pound and deepen the negative move, with the main target being the level at around 1.2900. If the support zone from the bigger time frames at around 1.2950 holds the bearish momentum, we could witness a positive retracement towards the former support – turned resistance level of 1.3050. Only a successful violation of 1.3180 could change the current market sentiment.