Daily Technical Analysis

EUR/USD

Current level – 1.1793

The U.S. dollar is holding steady in the beginning of the week and, in the early hours of today’s trading session, the pair is re-testing the breach zone at 1.1790. The bulls seem to be taking a rest before attempting to charge the resistance zone between 1.1840 and 1.1870. If the support at 1.1790 fails to hold the bearish pressure, bulls will likely gain an opportunity for a better entry around the support level of 1.1746. Today, a peak in volatility can be expected around the announcement of the ZEW economic sentiment and conditions at 09:00 GMT. The development of a bearish scenario would be possible if the U.S. government approves another huge stimulus bill. If this is the case, then we might witness a test of the lows at 1.1615.

USD/JPY

Current level – 105.31

After the failed test of 106.00, the currency pair breached the support at 105.80 and is now headed for a test of the next support level of 105.50. If the dollar keeps losing ground against the yen, we could even witness a test of the key support at 105.00. In the opposite direction, only a confirmed breach of the resistance at 106.00 would signal a return to bullish sentiment and a possible attack of the levels at around 108.00-109.00.

GBP/USD

Current level – 1.3039

The sterling encountered resistance around 1.3060 after the pair managed to confirm the breach at 1.2990. Bullish sentiment still prevails in the market, however it’s possible for the GBP/USD to enter a range phase as buyers’ strength seems to be limited to the level of around 1.3060. In order to maintain the positive mood, prices should hold above the level of 1.2990. If the rally continues, the first target for the buyers would be 1.3100 and the second one would be the level of 1.3200. Critical level for the uptrend is the beginning of the breach impulse at 1.2940.