Forex Technical Analysis: EUR/USD, USD/JPY, GBP/USD

EUR/USD

Current level – 1.1119

After the unsuccessful test of the support levels around 1.1100 -1.1109, the currency pair consolidated around the current price of 1.1119. If the EUR/USD manages to hold above the aforementioned levels of support, the common currency might challenge the resistance level at 1.1130. If 1.1130 does not stop the bullish momentum a test of the zones around 1.1171 and 1.1199 will remain the more probable scenario. However, if bears regain the upper hand and 1.1100-1.1109 is violated, the EUR/USD could push for the major support around 1.1068. Volatility this week can be expected around the US Core CPI on Tuesday (13:30 GMT), PPI on Wednesday (13:30 GMT) and the Retail sales data, scheduled for Thursday (13:30 GMT).

USD/JPY

Current level – 109.60

At the moment of writing, the USD/JPY is preparing to test the December highs after the recent rally from 108.00. Sentiment remains positive and if bulls manage to muster enough strength to pull through 109.68, helped by the lack of an increase in US-Iran tensions and the successful signing of the phase one of the US-China trade, the USD/JPY might target the highs from May 2019. If momentum fades, first support lies at 109.20, followed by the zones at around 108.83 and 108.47

GBP/USD

Current level – 1.3031

The Sterling is continuing to lose ground against the dollar after briefly trading above the 1.3061 resistance. As sentiment is more to the negative side, a test of the support at 1.3000 remains rather likely. A breach of the aforementioned should pave the way towards the next level of support at around 1.2917. Nevertheless, if today’s economic data signals an improvement in the UK economy, buyers could push the Cable towards the resistance at 1.3124. The data will be released at 09:30 GMT