Daily Technical Analysis

EUR/USD

Current level – 1.1255

During yesterday’s session the bullish momentum faded and the bears took control. In today’s early trading hours the currency pair seems to be consolidating around the current price of 1.1254, just over the nearby support level at 1.1238. An attempt for a breach of the aforementioned level is highly probable and, if successful, could lead to a continuation of the downward move, targeting the next support zone at 1.1178 and possibly the lower one at 1.1099. If buyers re-enter the market, they could push the EUR/USD towards a new test of the resistance zone at 1.1350, followed by the next one at 1.1404. Volatility should pick up after the announcement of the US GDP and Initial Jobless Claims at 12:30 GMT.

USD/JPY

Current level – 107.04

After the negative move was limited to the level at 106.05, the bulls successfully pushed the price back towards the level at 106.62. At the time of writing, the currency pair is preparing for a test of the resistance zone at 107.18, but only a successful breach of 107.55 could lead to a further appreciation of the dollar against the yen, towards 108.51 and, possibly, 109.80. If the aforementioned resistance zone at 107.18 holds, the USD/JPY will probably continue to trade in the previously formed range between 106.62 and 107.18 until the end of the day.

GBP/USD

Current level – 1.2412

The Cable breached the support zone at 1.2450 and is now consolidating around the current price of 1.2412. At the time of writing, the most probable scenario is a move towards 1.2340 which, if broken, will lead to an increase in negative sentiment and will probably deepen the sell-off. If buyers take control, they will try to break through the resistance zone at 1.2488, followed by the major one at 1.2552.