Daily Technical Analysis

EUR/USD

Current level – 1.1668

Yesterday, the common currency recovered some of its losses, while gains remained limited to the local resistance at 1.1676. Expectations are for a pullback from the current sell-offs and it’s possible that buyers will charge the key area at 1.1700-1.1720. An alternative scenario would be a more complex pullback, with another test of the lows around 1.1630. If this test fails, bears would most likely seek better prices at around 1.1700 or 1.1760. In order to change the current market sentiment, bulls would have to overcome 1.1760 and hold their ground. If we take a look at the larger time frames, the uptrend is still in place and the sell-offs could become a deeper retracement that belongs to the larger time frames in question. First support for the large time frames would be 1.1440.

USD/JPY

Current level – 105.48

Bulls began losing their momentum as they neared the resistance at 105.60. The recovery of the Greenback is fueled mainly by investor hopes on new stimulus packages coming from the FED. However, charts suggest that bears are still in control, with the major resistance being in the 105.80-106.00 range. As the yen is considered a safe haven asset, its short-term course would be highly impacted by the U.S. monetary policy and fears of new economic lockdowns due to COVID-19. Bulls can expect to face local support at 105.28 and a more substantial one at 104.80.

GBP/USD

Current level – 1.2753

The Cable sell-off remained limited above 1.2700, forming a local support at that area. The breach of 1.2770 lacked energy and the pair couldn’t make a decent run. Bears might seek better re-entry levels around the 1.2860 resistance level. If the current range turns out to be just a market pause and the support is violated, the next targets for the bears might be 1.2530 and 1.2440. A potential shift in the current trend can be expected if buyers manage to overtake 1.2920.