Daily Technical Analysis

EUR/USD

Current level – 1.1719

As expected, yesterday’s election day in the U.S. brought volatility to the markets. Bears entered aggressively just above the 1.1754 resistance after the expected democrat “blue wave” crashed. The market bottomed around the 1.1626 support level and managed to recover all of its losses. Since there is still no clear winner announced, the high market volatility is expected to continue.The pair is currently found at a crucial crossroad and, if the bulls manage to overcome the resistance at 1.1754, they would also have a chance of charging the 1.1834 and the 1.1880 resistance zones. If the sell-offs are renewed, the support around 1.1626 won’t be capable of holding off the bears. If this becomes the case, this would be a signal that the market is paving the way for a plunge towards the 1.1350 level. On top of post-election uncertainty, today investors would also have to monitor the FED’s interest rate decision (19:00 GMT), followed by a press conference (21:30 GMT) that would unveil the future plans of the central banker. New fiscal stimulus would further deteriorate the Greenback, but due to the upcoming second wave of COVID-19, dollar demand may rise again as investors start seeking out safe haven assets.

USD/JPY

Current level – 104.27

The expectations for a strong selling interest above 105.19 came true and prices were demolished, breaching all supports on the way down. The market is looking ready to breach the support at 104.09 with potential targets being the level 103.10 and even the one of 101.15. First resistance for the day would be 104.46.

GBP/USD

Current level – 1.2961

The bulls made a fleeting attempt to breach the resistance at 1.3060, but the bearish pressure turned out to be too strong and prices plunged towards the support at 1.2934. Buyers do not seem to be able to keep their momentum and the bears will most likely try to breach the 1.2934 and 1.2860 supports, with their first goal possibly being the support at 1.2755. Today, traders will expect a decision from the Bank of England on the interest rates and quantitative easing (12:00 GMT). The event has the potential to become a catalyst for a 1.2860 breakout. Bullish scenarios for the pair are possible if prices rise above 1.3060.