Daily Technical Analysis

EUR/USD

Current level – 1.1862

Bulls amassed positions around the support zones of 1.1760 and 1.1800 as sentiment remains positive – for a charge at the resistance level at 1.1892. If this zone is breached the rally might take off, with the first target being the resistance at 1.2010. Bulls can expect intraday support at around 1.1840, while the more substantial one can be found at 1.1800. The Dollar slid mainly due to concerns regarding rising COVID-19 cases and the gradual transition of power to president-elect Biden. Today, higher volatility can be expected around the announcement of the retail sales (13:30 GMT) and industrial production (14:15 GMT) data for the U.S.

USD/JPY

Current level – 104.48

The support around 104.85 was successfully breached and yesterday’s test acted as confirmation. In the early hours of today, the pair is hovering just above the support zone of 104.43. If the sell-off continues, bears might be able to take over the support zones of 104.43 and 104.18, targeting the lows at around the 103.20 level. A positive scenario for the pair, while less likely, could be possible if the USD/JPY cimbs above the resistance of 105.45.

GBP/USD

Current level – 1.3214

The sterling is trading higher during the Asian session on news that a possible trade agreement between the UK and the EU may be reached as early as the beginning of next week. News regarding Brexit terms and negotiations would continue to influence the pair. In the early hours of today, the GBP/USD is nearing the resistance at 1.3225. If there is a breach, the pair should rally towards the next resistance zone between 1.3273 and 1.3309. If bulls gather enough strength to take over the 1.3309 level, the rally could continue towards the 1.3400-1.3500 levels. First major support for the bulls lies at 1.3170, followed by the one at 1.3117.