EUR/USD
Current level – 1.1770
The support at 1.1708 managed to successfully stop the recent sell-off and the EUR/USD bounced back. After the bulls aggressively entered the market, the resistance at 1.1746 was easily violated and the pair reached the next target at 1.1791. During the early hours of today’s trading, the price consolidated around the current level at 1.1770 and a new attempt at 1.1791 is highly probable. Violation of the aforementioned zone will pave the way towards the high at 1.1825 and show that the sentiment is growing increasingly positive. If bears try to re-enter the market, the retracement should be limited to the level at 1.1746, with the major support being 1.1708. Today, a spike in volatility can be expected around the announcement of the building permits numbers in the United States at 12:30 GMT.
| Resistance | Support | ||
| intraday | intraweek | intraday | intraweek |
| 1.1790 | 1.1825 | 1.1746 | 1.1615 |
| 1.1825 | 1.1870 | 1.1700 | 1.1450 |
USD/JPY
Current level – 105.49
At the time of writing, the USD/JPY price action shows that the sentiment is turning positive as the price is testing the resistance zone at 105.51. If this breach is confirmed, we will most probably see the USD gain more ground against the JPY and test the next resistance at 105.77. If this level is violated, the bullish pressure will increase and the pair could go for a test of the highs from last week – 106.02. If the bulls are not powerful enough to breach this level, a new test of the first support at 105.38 might be a possibility. If this level does not hold, the USD/JPY will most probably head towards 105.01.
| Resistance | Support | ||
| intraday | intraweek | intraday | intraweek |
| 105.51 | 106.02 | 105.31 | 104.40 |
| 105.77 | 107.20 | 105.01 | 104.00 |
GBP/USD
Current level – 1.2935
The test of the resistance zone at 1.3010 was not successful and the price consolidated around the current level of 1.2939, just in the middle of the 1.2891 – 1.2991 range. New attempt to test the aforementioned level is expected. If the level in question is violated, the Cable will most probably gain more ground, but only a successful breach of the next resistance zone at 1.3065 could lead to a more sustained rally. The alternative scenario is for a test of the support at 1.2891, followed by a test of the one at 1.2831. If these levels do not hold, we can expect a deeper sell-off and a change in the current market sentiment.
| Resistance | Support | ||
| intraday | intraweek | intraday | intraweek |
| 1.3010 | 1.3100 | 1.2890 | 1.2770 |
| 1.3065 | 1.3146 | 1.2831 | 1.2700 |
