Daily Technical Analysis

EUR/USD

Current level – 1.2084

EUR/USD Current level – 1.2084 Buyers re-entered the market around the support zone at 1.2040 and the rally has gained traction after the currency pair managed to close the session near the daily highs. At the time of writing, the market is trading around the resistance at 1.2086. If this level is breached, the next target would be the level of 1.2116. The sentiment from the higher time frames are mixed and it is yet far too early to say whether the bulls or the bears have the upper hand. If the resistance at 1.2140 is violated, the bulls would have a chance to affirm their presence and charge the highs at around 1.2340. In an alternative scenario, the support at 1.2040 could be tested once again and, if it fails to fend off the attack, the sell-off could head towards the level at 1.1960 or even the one at 1.1915.

USD/JPY

Current level – 105.63

The pair is testing the support at 105.61 and the presence of the bulls around these levels is barely noticeable. There is a chance for this zone to be violated and, if so, buyers would get a better market entry opportunity at around 105.30. The first intraday support is found at 105.90, but a successful breach above 106.15 could reinforce the rally and boost it towards 106.90. Critical supports for the rally are 105.00 and 104.60 and a breach of the latter could have the potential to spark a deep sell-off towards 101.50.

GBP/USD

Current level – 1.3954

After a technical test of the support at 1.3850, the Cable skyrocketed towards 1.3985. The rally was mainly fueled by positive news from the UK on the declining number of newly infected cases, significant progress made in the efforts to vaccinate the population there, and hopes for a loosening of the current economic restrictions. Should this optimism persist, the paircould head towards the high of 1.4240 that was last reached in 2018. The first local support is the level of 1.3925, while the more significant one is found at 1.3840.