Daily Technical Analysis

EUR/USD

Current level – 1.2171

At the beginning of the week, the single European currency reached the local low at the support level of 1.2062, after which the bulls gained momentum and the rally resumed. At the time of writing, the rise in the price of the euro against the U.S. dollar continues, with the current expectations being positive – for a test of the level of resistance at 1.2221. Today, the most important economic news that could have an impact on the market is the data on the existing home sales for the U.S., as well as the data on crude oil stocks for the U.S. (15:00 EET).

USD/JPY

Current level – 103.52

The USD lost some ground and, at the time of writing this analysis, the price is about to test the important support zone at 103.53. A successful breach for the bears here could deepen the pullback and easily lead to an attempt at violating the next target at 103.27. The first resistance for the bulls lies at the level of 103.89, but only a successful breach of the next target at 104.03 could change the current market sentiments.

GBP/USD

Current level – 1.3713

The bullish sentiment among investors remains intact after the currency pair reached the level of 1.3740, which was last observed in 2018. At the time of writing, we are seeing a correction, which should remain limited above the level of 1.3700 – the first important support for the currency pair. If the potential sell-off deepens, we might witness a test of the next support at 1.3620, which would present an opportunity for the bulls to find better market entry levels. In accordance with the higher time frames, the local high at 1.3740 also acts as resistance for the bulls. If this level is overcome, a further strengthening of the positive sentiment and an attack of the next levels at around 1.3800 – 1.4000 could follow. The retail sales data for the UK (today at 07:00 GMT) could lead to an increase in volatility.