Daily Technical Analysis

EUR/USD

Current level – 1.1900

The currency pair tested the support level at 1.1870 and, at the time of writing, it is holding above the mentioned level. However, another test of the above-mentioned level is also possible which, if successful, would pave the way for the EUR/USD towards the next target at 1.1807. If the bulls gain enough momentum and successfully breach the resistance at 1.1943, we should see an appreciation of the euro against the dollar, with the main target being the next resistance at 1.1988. This week, investors` attention will be focused on the announcement of the data on retail sales (Thursday; 12:30 GMT) and on the housing permits data (Friday; 12:30 GMT) for the U.S., as well as on the euro area data about the trade balance (Friday; 09:00 GMT) and the CPI data (Friday; 09:00 EET).

USD/JPY

Current level – 109.66

The pair is currently trading in the tight range between 109.54 – 109.88. A successful breach of the support at 109.54 would signal for a downward movement towards the next support at 108.85. However, if the pair manages to breach the resistance at 109.88, this may give buyers a chance to enter the market more aggressively and lead the pair towards the next important resistance at 110.39.

GBP/USD

Current level – 1.3708

The currency pair rebounded from the critical support level at 1.3677, but couldn’t reach the resistance at 1.3760. Today, the pair will most probably test this level again. If the bears prevail, this scenario would strengthen the negative expectations and could lead to a move towards the next support at 1.3600. However, prior to this happening, it is possible for the Cable to recover part of its losses and to retrace towards the resistance at 1.3760. The most important economic news for this week is the data on the industrial and manufacturing production (Tuesday; 08:30 GMT) for the UK.