Daily Technical Analysis

EUR/USD

Current level – 1.2042

During the last trading session, the single European currency continued to lose ground against the U.S. dollar. At the time of writing the analysis, we are seeing a correction in the positive direction, in order to reach and test the resistance at 1.2058. A successful breach of the mentioned resistance could restore the range-bound price action in the narrow channel between 1.2058 – 1.2181. The main economic news during today’s session that would have an impact on the market is the data on the consumer price index for the eurozone (10:00 GMT), the ADP non-farm employment change for the U.S. (13:15 GMT), and the data for the ISM non-manufacturing index for U.S. (15:00 GMT).

USD/JPY

Current level – 104.98

The bullish momentum seems to be fading after the USD/JPY breached the major resistance zone at 104.85. If the pair closes above the mentioned level on the daily charts, the pair will most probably head towards 105.50. If the bears enter the market and successfully attack the level at 104.59, the sell-off should deepen towards the next zone at 104.20.

GBP/USD

Current level – 1.3664

The Cable marked another attempt at leaving the formed channel between 1.3633 – 1.3740 after the unsuccessful test of the lower limit of the range, which acts as the main support for the currency pair. At the time of writing, the bulls are about to test the resistance zone at 1.3688. The economic news for today that could lead to an increase in volatility is the data for the PMI services for the UK (09:30 GMT). However, news regarding the spread of the COVID-19 pandemic are also expected to carry significant weight.