Daily Technical Analysis

EUR/USD

Current level – 1.1803

The EUR gained quite a bit of ground against the USD, but the rally was limited around the resistance level of 1.1834. At the time of writing the analysis, the price is locked in the narrow range between 1.1800 – 1.1834, but the currency pair is preparing for a test of the lower border of the mentioned range. If the bears manage to violate the 1.1800 level, the retracement can gain momentum towards 1.1754. If the aforementioned level of 1.1800 holds, bulls will remain in control and should go for a test of the 1.1834 level. А successful breach should push the EUR/USD towards a test of the local high at 1.1880 and strengthen the positive sentiment. Today, volatility should pick up when the Unemployment rate and the Nonfarm Payrolls (13:30 GMT) for the U.S. are released.

USD/JPY

Current level – 103.59

The bears gained the upper hand and the test of the support level at 104.09 was successful. The USD/JPY dropped and easily reached the next target at around 103.49. At the time of writing, the price is consolidating above it, but if the depreciation of the dollar against the major world currencies continues, trading sessions around the lows from March 2020 are a highly probable scenario. In the positive direction, the first target for the bulls lies at 104.09, which is now acting as a resistance. Only a breach of the next resistance at 104.68 will lead to a change in the current market sentiment.

GBP/USD

Current level – 1.3128

Yesterday, the Cable rallied and the price successfully breached the resistance zones at 1.3006 and 1.3062. The rally lost momentum around the 1.3159 level where, at the time of writing, the price is consolidating. If the bulls manage to violate the aforementioned level the rally should continue towards the 1.3200 level. In the negative direction, if bears take control, the pair is expected to test the first support zone at 1.3062, followed by the next one at 1.3006.