Daily Technical Analysis

EUR/USD

Current level – 1.2147

The pair managed to find the expected support at 1.2060 and, at the time of writing, the bulls are attempting to overtake the resistance zone at around 1.2140. The market could start entering into a light consolidation phase around the current levels. Alternatively, bulls can directly try to overtake the resistance at 1.2220. The trend coming from the higher time frames is still intact, so market sentiment is still in favor of the bulls as the pullback rolls over. If the rally renews, the potential target for the buyers could be the resistance at 1.2340. The daily support can be found again at around 1.2060. Today is the inauguration ceremony of president-elect Joe Biden and increased volatility can be expected in some markets.

USD/JPY

Current level – 103.74

The Greenback is showing signs of weakness in the beginning of today’s trading session. The resistance zone between 103.90 and 104.03 has managed to repel bullish impulses and the market looks primed to continue its downtrend. The key support here is 103.53 and, if this level is violated, a sharper sell-off, towards 103.00 and 102.70, could be expected. A bullish scenario for the pair would be possible if the market surpasses the resistance 104.28.

GBP/USD

Current level – 1.3651

The Cable is enjoying a good week so far and is trading above 1.3620 once again. Bulls seem confident and are headed towards the resistance at 1.3700. If a consolidation happens below 1.3700, it could be interpreted as a signal for an upcoming breach and a subsequent rally. The zone also attracts bearish interest, so the breach might fizzle out and trading could resume in the range between 1.3530 and 1.3700. Today, a series of inflationary data is expected from the UK (CPI data at 07:00 GMT and PPI data at 09:30 GMT) and so increased volatility can be expected around those hours.