Daily Technical Analysis

EUR/USD

Current level – 1.1958

The pair broke out of its recent range after it had initially breached the resistance zone at 1.1918. That zone will act as a daily support for the moment, while the major one remains the level of 1.1883. Expectations remain positive – for a renewal of the uptrend, with potential targets being 1.1980, 1.2180 and 1.2340. At the moment, both the lower and higher time frames are moving in sync, which could result in stronger rallies and a more sustainable trend.

USD/JPY

Current level – 108.79

The Greenback is showing weakness against most major currencies. The USD/JPY sell-off continued and the local support at 109.30 was successfully breached. It’s possible for the bulls to re-enter the market around the current levels, but in order to regain control, they would first have to hold the prices above the zone of 109.68-109.80. The uptrend, outlined by the higher time frames, is still intact and its key support is 108.45. If that zone is breached, the trend could roll over and the sell-offs could exacerbate.

GBP/USD

Current level – 1.3758

Compared to the euro and the Japanese yen, the sterling is lagging behind in its performance against the USD. However, the chart model here is more defined and the expected rally is still in the making. While the market was testing the support at 1.3667, it formed a double bottom. More importantly, the second bottom didn’t have candles closing below the tails of the previous low. The support was tested with great precision and the bullish comeback was decisive. The confirmation of the model came after the bears pressured the area around the resistance at 1.3766, but in the end, the efforts of the sellers were futile and prices remained within the consolidation zone. The current range could be interpreted as a position building moment and, if 1.3766 is breached, the rally could head towards 1.3834, 1.3920, and 1.4000. This scenario, however, could get invalidated if the market falls below 1.3667.