Daily Technical Analysis

EUR/USD

Current level – 1.1641

On Friday, the pair tested the resistance at 1.1703 and the bears managed to breach the support at 1.1657 shortly afterwards. In the early hours of today, the euro is trading below the breakout level, and sellers are expected to try to breach the area around 1.1600. The market shows divergence due to the lack of momentum in the breach. This can lead to a more complex pullback.If this happens, bears will be able to look for better entries in the range between 1.1703 and 1.1754. The presence of sellers is already noticeable in the higher time frames and the continuation of the downtrend, with a target of 1.1375, is becoming increasingly possible. This week is expected to be one of the busiest of the year as an avalanche of events starts today, beginning with the PMI data for the Eurozone (09:00 GMT) and the U.S. (15:00 GMT). On Tuesday, the presidential elections in the U.S. and the volatility created by the event would echo throughout Wednesday as well. On Thursday, investors would monitor the FED’s interest rate decision (19:00 GMT) and the following press conference (19:30 GMT) for hints on the future plans of the central bankers. The week will end with the announcement of the unemployment and non-farm payroll data for the U.S. (13:30 GMT).

USD/JPY

Current level – 104.54

The market is developing according to the expectations from Friday as the downtrend impulse from 104.68 was fully retraced. Daily supports for the pair are 104.39 and 104.09. The bulls are gaining momentum and expectations seem to be for a test of 104.87. In the event of a breach, prices are expected to reach the level of 105.19. The area between 105.19 and 105.69 is of great interest to sellers and it is likely that they will re-enter the market, with their goal being to breach the lows around 104.09. Bullish scenarios are only possible at market levels above 105.69.

GBP/USD

Current level – 1.2932

The bulls failed to reach the resistance at 1.3000, and sell-offs began with the opening of the markets after Prime Minister Johnson announced a new national lockdown. The market is already primed to breach the 1.2860 support level. If that happens, the first target for the bears could be the level of 1.2700. Retracements are unlikely at that point, but if they do happen, they should be limited to 1.3000. Today, the pound will be affected by the announcement of the PMI for the United Kingdom (09:30 GMT), while on Thursday the interest rates decision of BoE (12:00 GMT) is expected to spark volatility.