Daily Technical Analysis

EUR/USD

Current level – 1.0811

The pullback phase of EUR/USD seems to be getting to an end as bears re-entered the market and took control over the prices. The support at 1.0830 was violated again and it is possible for prices to head towards the support zone around 1.0770, with a high chance for a breach there. If this becomes the case, then the next support area is at around 1.0680. However, if 1.0770 manages to hold the bear pressure, trading will likely continue in the range 1.0880-1.0770 and only a breach above the distant 1.1230 could change investor sentiment. Today traders will monitor the US initial jobless claims data coming out at 12:30 GMT.

USD/JPY

Current level – 106.86

Bears managed to regain control around the critical zone of 107.80-108.00 and smacked down the prices below the support at 107.00. Expectations are for another test of the support at around 106.45 and any pullbacks should remain limited below the local resistance of 107.40. There might be a slowdown in price action until the news mentioned in the EUR/USD analysis are released.

GBP/USD

Current level – 1.2211

The pound scored another negative day following the worst GDP contraction on a monthly basis since 1997. The support at 1.2275 was violated and expectations are for a test and confirmation of that breach. The sterling seems to be falling out of favor for investors with the Brexit transition deadline looming, the unclear trade relations with the US, and mostly because of the current recession in the country. The local consolidation around 1.2200 can be breached should bear pressure persist. That can push prices lower towards 1.1800 and even the March lows at around 1.1460. If bulls decide to enter the market, they can expect significant hardships at around 1.2470 and the double top at 1.2646.