Daily Technical Analysis

EUR/USD

Current level – 1.1570

After four consecutive days of gains, prices managed to briefly reach the psychological level 1.1600 which is a resistance coming from the larger time frames. Buying pressure is looking strong, but from current levels a healthy pull-back is desirable, before the main trend continues. It’s possible to see a test of the breach around 1.1460 and in order to preserve the trend’s energy, prices should remain above that level. Intraday support can be found around the zone 1.1520 and 1.1545. First resistance is 1.1600, and it probably won’t be overtaken by the buyers at the first attempt. If 1.1600 is violated, the next targets for the bulls can be 1.1750 and 1.1930. Today, the only notable event in the economic calendar is the US jobless claims number coming out at 12:30 GMT.

USD/JPY

Current level – 107.11

The resistance at 107.38 is holding up against the buyers’ attacks and the pair is trading between 106.74 and 107.38. The market struggles for direction as expectations remain mixed. The Dollar is weakening against major currencies, but if US-China tensions rise again, that could easily change. The Yen can also be favored by investors if the situation with COVID-19 pandemic worsens. The first breach of the range can be a fake one, so it would be good to see either a confirmation, or a complete turnover of the move that caused the breach. If any of those two scenarios happens, traders will have more clarity on the future path of the market.

GBP/USD

Current level – 1.2728

The pair successfully tested the breach of 1.2660 and now the level is expected to become а strong support for the ongoing trend. Expectations are positive and the resistance 1.2760 can be breached, with the next target for the buyers being at 1.2874. If bulls fail at their first attempt, the market could enter a range with a key support being 1.2520.