Daily Technical Analysis

EUR/USD

Current level – 1.1275

In the last two weeks, the currency pair has formed a range in the narrow channel between 1.1205 – 1.1366. At the time of writing, the single Еuropean currency is on the verge of testing the support zone at 1.1259, and a possible breach could give the bears the necessary incentive to test the main support at 1.1205. The consolidation is likely to continue while a number of economic news this week is expected to have a major impact on the market, with the most important one being the decision of the Federal Reserve to reduce the pace of its bond buying program.

USD/JPY

Current level – 113.55

The Ninja continues its movement within the range between 113.04 – 113.80 and, for now, neither the bulls nor the bears manage to prevail and take control. The appreciation of the U.S. dollar against the Japanese yen would lead to a test of the resistance at 113.80 as this is also the first significant zone ahead of the currency pair in the upward direction. On the other hand, in the downward direction, the critical support area is the level at 112.75. A breach of this level could give the bears a significant advantage, which, in turn, would lead the market towards the next significant support from the higher time frames at 110.80.

GBP/USD

Current level – 1.3193

The bears managed to prevail during the last trading session, leading the price towards a test of the support zone at 1.3206 and, at the beginning of today’s session, we witnessed a successful breach of the mentioned support. The breach cannot be confirmed just yet, but if the bears manage to maintain their control over the market, the sell-off might deepen towards the next significant support zone at 1.3100, followed by the zone at 1.2900 coming from the higher time frames.