Daily Technical Analysis

EUR/USD

Current level – 1.1604

The bulls did not have enough strength to overcome the resistance of 1.1663, and in the past session, the pair came out of its range and breached the support of 1.1618. As long as the support of 1.1575 remains unbreached, the bulls stand a chance of continuing the upward momentum. The critical resistance for the buyers is the area between 1.1663 and 1.1687. As long as prices remain below this zone, the bears will be in control and new declines will not be ruled out. It is possible that the pair will continue to trade in the range between 1.1575 – 1.1687, at least until Thursday, when the decision on the key interest rate of the European Central Bank will be announced. For now, sentiment is mixed, and should trading to return above 1.1618, it would tip the scales in favor of the bulls. If the declines continue and the bears breach 1.1535, an attack on the 1.1410 zone can be expected. Today, increased activity may be triggered by the data on consumer confidence and sales of new homes in the United States coming out at 14:00 GMT.

USD/JPY

Current level – 113.81

The pullback of the currency pair continues, and during the last session, the bulls found support at 113.70. Sentiment remains positive –for the continuation of the main movement and a new test of the resistance of 114.42. Only a breach of 113.20 would disrupt the integrity of the trend and, for now, this is the main support area. The daily support for the buyers is 113.70 and the first resistance is 114.10.

GBP/USD

Current level – 1.3760

The pound has halted its uptrend and a complex retracement is currently developing on the market. The first support for the bulls is the area of around 1.3760, and the first resistance is 1.3830. If it takes longer for the pullback to develop, it is expected to remain limited above the local support of 1.3720. Current sentiment remains positive, and should 1.3830 be breached, the next target for the buyers could be the area at around 1.3900.