Daily Technical Analysis

EUR/USD

Current level – 1.0900

The increased bullish momentum helped the currency pair breach the resistance zone at 1.0830 and now it is heading for a test of the next one at 1.0965. If the attempt turns out to be successful, a more positive short-term picture will be drawn and bulls could easily lead the price towards the next important resistance levels at 1.1079, followed by 1.1199. In the opposite direction, a negative push of the sellers could lead the price towards the formed as a support zone at 1.0830, targeting the lower border of the 1.0652 – 1.0830 channel.

USD/JPY

Current level – 110.58

No change in the situation here since yesterday. The resistance level at the upper border of the trading channel at 111.34 seems to be a serious hurdle for the buyers, after another unsuccessful test. Only a breach of the aforementioned 111.34 will help pave the way towards the next resistance at 112.20. If the latter is violated, the positive sentiment will be confirmed and we could see the pair trade above the December highs at around 113.60. Alternatively, if the support at 109.94 does not hold and bears gain control, the next target will be 108.526.

GBP/USD

Current level – 1.1832

The Cable continues to trade just below the resistance level at 1.1999, after an unsuccessful attempt to break through it during yesterday’s session. High volatility is expected around the awaited Retail sales data (07:00 GMT) and later, after Bank of England’s Interest rate decision (12:00 GMT). This volatility could help the pair break 1.1999 and head towards 1.2283, but at the moment of writing this is the more unlikely scenario. In the opposite direction, the first major support lies at 1.1480 where last week’s selloff was stopped. If breached, further declines towards 1.1300 could be expected