Daily Technical Analysis

EUR/USD

Current level – 1.1857

The attempts for a violation of the resistance level at 1.1858 during the end of last week were not successful and the price consolidated just under the aforementioned zone. A new test is highly probable and a breach could easily help the currency pair reach 1.1902. A breach of this level would encourage positive expectations for the future path of the EUR/USD. If bears prevail, their first target will lie at 1.1828, followed by the lower major support at 1.1780. This week, the attention of the traders will be focused on the speech of Fed`s Chairman J. Powell (14:00 GMT) and also on the expected data for Initial jobless claims on Thursday at 12:30 GMT.

USD/JPY

Current level – 104.34

The retracement was limited to the resistance zone at 104.50 and the currency pair slid down, heading for a test of the support at 104.27 which is coming from the bigger time frames. If the bears manage to violate this level, the USD will most probably continue to lose value against the JPY and we might see a move targeting the lows from March of around 102.30. If buyers re-enter the market, a successful violation of the aforementioned resistance zone at 104.50 could encourage a rally towards 105.28, a breach of which will indicate a switch to a positive market sentiment.

GBP/USD

Current level – 1.2955

The Cable continues to trade in the narrow range between 1.2920 and 1.3021. Successful breach of the upper border of 1.3021 could lead to future gains, targeting a test of the next important resistance level at 1.3146 and, possibly, 1.3288. If bears prevail, a breach of the support zone and the lower border at 1.2920 could easily pave the way towards the next lower target at 1.2770.