Daily Technical Analysis

EUR/USD

Current level – 1.2161

The bulls prevailed during Friday’s trading session and the successful breach of the resistance zone at 1.2126 led to new gains for the EUR against the USD. At the time of writing, the price is sitting just below the next important resistance zone at 1.2170, which is coming from the higher time frames and so a new test of the mentioned level is a highly probable scenario. A breach of the mentioned level would easily lead to a continuation of the rally and would strengthen the positive expectations for the future path of the currency pair. If the bears enter the market, the corrective phase should be limited to the zone at 1.2126 (now acting as support) or 1.2066, if the sell-off continues past 1.2126. Important news for the traders this week is the expected U.S. unemployment change data (Thursday; 12:30 GMT) and the retail sales data (Friday; 12:30 GMT).

USD/JPY

Current level – 108.84

The currency pair managed to stay above the key support at 109.05 and this is a strong signal for continued upward movement. However, expectations are for a second test at this level and if it is passed again, then investors’ expectations will be positive for a test of the significant resistance at 109.73.

GBP/USD

Current level – 1.4027

The GBP gained quite a bit of ground against the USD and the pair is successfully holding positions above the last resistance zone at 1.4005. If the bulls remain in control, the rally will most likely continue towards 1.4100 – a level which was last reached at the end of February. The first target for the bears can be found at the level of 1.4005, which is now acting as a support.. Only a successful breach of the support at 1.3860, however, could easily lead to a change in the current market sentiment.