Daily Technical Analysis

EUR/USD

Current level – 1.2161

The pair is testing the support at around 1.2140 and, if the level holds, the next zones around 1.2180 and 1.2230 could enter the buyers’ crosshair. A breach above 1.2180 could be interpreted as an early signal telling us that the pullback above 1.2340 has ended. If this is the case, the first resistance zones are found at 1.2230 and at 1.2280, with the main target still being the level of 1.2340. The key support, which is expected to hold the pullback, remains at 1.2060. Today, an increase in volatility can be expected around the announcement of the consumer confidence index for the United States (15:00 GMT). The market could remain without a clear direction until the announcement of the Fed interest rate decision this Wednesday at 19:00 GMT.

USD/JPY

Current level – 103.67

The test of the support zone at 103.59 was not successful and the currency pair is currently trading just above the aforementioned level. Another attempt at violating 103.59 is currently the most probable scenario, but only a breach of 103.36 can lead to a deeper sell-off. The first resistance for the bulls can be found at 103.82, but in order for the market sentiments to change, bulls must first breach the 104.27 level.

GBP/USD

Current level – 1.3724

At the time of writing the analysis, the pair is testing the resistance level at 1.3731. If the breach is confirmed, the pair should gain momentum and head towards the resistance zone at around 1.3780. If the bulls are unsuccessful in their attack of 1.3731, we should see a pullback towards 1.3688 and, possibly, 1.3629.