Daily Technical Analysis

EUR/USD

Current level – 1.1864

The currency pair is consolidating over the support zone at 1.1858 as the positive sentiment is intact and an attempt for a breach of the close resistance level at 1.1902 is highly possible. If successful, this would strengthen the bullish expectations and increase the odds of a test of the next targets at 1.1940 and 1.1993. In the negative scenario in which the aforementioned support zone at 1.1858 is violated, we could see a test of the lower target at 1.1828. If it is broken, this could lead to a change in the current market sentiment. Today, the release of the ZEW Economic Sentiment for the Eurozone at 09:00 could lead to a rise in volatility.

USD/JPY

Current level – 105.60

The market is in a consolidation phase locked between 105.80 and 106.44. Bears might continue with their attempts for a breach of 105.80, with first target being the support around 105.30. First major resistance for the bulls is at 106.30. The news, mentioned in the EUR/USD review, might energize the market to break the current range, however to change the overall bearish sentiment, prices would need to hold above 106.44.

GBP/USD

Current level – 1.2847

After the sell-off was limited at the support zone at 1.2770, the price bounced, heading for a test of the close resistance zone at 1.2920. At the time of writing, the currency pair is consolidating around the current level at 1.2847, but a new bullish attempt at 1.2920 is probable. Successful violation of the aforementioned level at 1.2920 could easily lead the Cable towards the next target at 1.3021, showing that market participants are turning positive. If sellers re-enter the market, a decline towards and a break through the support zone at 1.2770 will pave the way towards 1.2640 and 1.2520.