Daily Technical Analysis

EUR/USD

Current level – 1.1254

The bulls failed to break the resistance level at 1.1400 during the last week and since the start of today’s trading session, the currency pair is facing a test of the support zone at 1.1240. If the bears manage to gain momentum and successfully break through this level, the most likely scenario will be for a test and a violation of the next support at 1.1140. The more important economic news for this week is the data on retail sales for the USA (Tuesday 12:30 GMT).

USD/JPY

Current level – 107.18

After the successful break of the more significant supports, the bulls managed to stop the sales at the level around 106.80 and even staged a fleeting correction, which was limited to the level of 107.40. At the time of writing, the sentiment towards the safe-haven currency pair is rather neutral, with investors waiting for further developments around the second wave of the COVID-19 pandemic on a global scale. A short-term consolidation in the narrow range 106.80-107.40, before we see a definitive move in either direction, is rather possible. The most important economic news that could affect the currency pair this week is the Bank of Japan’s interest rate decision (Tuesday 02:30 GMT).

GBP/USD

Current level – 1.2514

The break of the support zone at 1.2600 strengthened the bearish sentiment which led to further declines and a test of the next support at 1.2500. The test still cannot be considered as completed, and if successful, the bears can push the Cable towards the levels around 1.2360. This week investors and traders will be focusing on the data on Claimant Count unemployment change (Tuesday 06:00 GMT), the data for the consumer price index for the UK (Wednesday 06:00 GMT) and the Bank of England interest rate decision (Thursday 11:00 GMT).