Daily Technical Analysis

EUR/USD

Current level – 1.1956

The successful breach of the main resistance at 1.1920 led to a small rally towards the next important level at 1.2010. The bulls lost momentum just before testing the mentioned zone as the bears entered the market and we witnessed a correction to the support level of 1.1924. In the negative direction, if the latter is violated, we could witness a deeper correction and a test of the next significant area at 1.1890, followed by the one at 1.1827. The most important economic news for today is the data on the Preliminary CPI for the Eurozone (10:00 GMT), as well as the data on the ISM manufacturing for the U.S. (15:00 GMT).

USD/JPY

Current level – 104.41

The U.S. dollar managed to gain positions against the Japanese yen and, at the time of writing the analysis, the pair is preparing for a test of the resistance zone at 104.43. A successful breach here would give the bulls an extra incentive to attack the next significant level at 104.85. In the negative direction, the main support remains the level of 103.72, followed by the one of 103.20.

GBP/USD

Current level – 1.3355

The currency pair continues its range movement in the narrow range between 1.3302 – 1.3394. At the moment, neither the bears, nor the bulls have managed to gain the upper hand and breach through any of the borders of the mentioned range. If the dollar continues to gain ground and the bears take control over the market, we can expect another test of the support zone at 1.3302, which, in turn, could lead to a deeper sell-off and a test of the next significant support at 1.3225. In the positive direction, if the last test of the 1.3302 support proves to be the end of the consolidation phase, we could witness a successful breach of the zone at 1.3394, which should lead to an attack of the 1.3480 level.