Daily Technical Analysis

EUR/USD

Current level – 1.1130

The currency pair managed to reach the resistance at 1.1140, levels that were last traded in the end of March. Local support lies around 1.1088, and the more essential one in order to preserve the ongoing trend is at 1.1000. At the current levels, a couple of bullish-biased scenarios are possible. If bulls maintain their energy from last week, they might overtake 1.1140 and push prices higher towards 1.1180 and potentially 1.1240. On the other hand, if bears enter the market, there might be a slowdown in price action with the market entering a short-term range or a more complex and deeper pullback. This would give the bulls the opportunity to seek better entry levels in the zone between 1.1000 and 1.1080. However, 1.1000 must not be violated to keep the bullish bias alive. Markets are looking at a busy week in the economic calendar. Today traders are expecting a series of manufacturing PMI data from across Europe in the morning and from the US at 14:00 GMT. On Wednesday the services PMI from Europe and the US are coming out, on Thursday the ECB is going to announce its interest rate decision (11:45 GMT) and on Friday is released probably the most anticipated data – the non-farm payrolls and unemployment rate from the US at 12:30 GMT.

USD/JPY

Current level – 107.69

The market is unable to find direction as the breach of 107.37 turned out to be a false one. Aggressive buys around 107.10 could be a sign for an upcoming market move. Bulls might succeed to breach 107.92, and, if confirmed, there might be a rally towards the next resistance zones at 108.45 and 109.20. The Greenback is losing ground across the board, so an alternative scenario is also on the table. A new breach of 107.37 could prove to be real and prices could head towards the support 106.80 and even 106.00. Events that could spike volatility are mentioned in the EUR/USD analysis.

GBP/USD

Current level – 1.2405

The Cable continues its path to recovery and prices managed to breach the resistance at 1.2360 in early trade this morning. Bullish sentiments prevail thanks to the dollar’s weakness during the past week. Intraday support can be found at 1.2360, and the stronger one should be at 1.2290. First resistance for the rally would be 1.2425, followed by 1.2470 and 1.2520. Today traders would monitor manufacturing PMI data from the UK at 08:30 GMT, as well as the data coming from the US mentioned in the EUR/USD analysis.