Daily Technical Analysis

EUR/USD

Current level – 1.1765

After the sell-offs in the currency pair hit a hurdle around the level of 1.1730, the bulls prevailed and led the price towards the resistance zone at 1.1755. The EUR/USD is consolidating over the aforementioned level and, if the breach is confirmed later on, a test of the next target at 1.1802 is highly probable. A violation of this level will strengthen the bullish expectations and pave the way to the local high of 1.1839 and, possibly, the one at 1.1868. If bears re-enter the market, a strong negative move could easily lead to a test of the support zone at 1.1709, followed by the one at 1.1676. A pickup in volatility can be expected after the announcement of the U.S. Initial Jobless Claims at 12:30 GMT.

USD/JPY

Current level – 106.00

The rally during yesterday’s trading session helped to successfully breach the resistance zone at 105.77 and, at the time of writing, the price is testing the next target level at 106.00. A successful breach here could lead to new gains for the dollar against the yen and head the currency pair towards an attempt to break through the upper major resistance zone at 106.30. If the level holds, a corrective move for the bears should be limited to the aforementioned level at 105.77, now acting as support.

GBP/USD

Current level – 1.2922

The GBP/USD slowly gained some ground after falling during the previous trading sessions. A breach of the resistance zone at 1.2913 is probable and could continue the bullish move, heading the currency pair for a new test of the major resistance level at 1.2991. On the other hand, if sellers take control and gain enough momentum, we might see a test of the support level at 1.2831. A successful breakthrough of this level could help the bears push the price towards a test of the next target at 1.2770.