Daily Tecnical Analysis

EUR/USD

Current level – 1.1922

During the last trading session, the single European currency managed to recover a bit of its recent losses against the U.S. dollar, but the upward move was limited by the resistance zone at 1.1925. This can be considered a short-term correction happening shortly before the bears are to re-enter the market. However, before the market sentiment turns negative, the resistance level at 1.1850 needs to be successfully breached. Only in this case can a continuation of the downward movement – towards the next support at 1.1760 – can be expected. In case the pair violates the resistance at 1.1925, the EUR/USD might gain just enough momentum to test the resistance at 1.2007. Before either of these scenarios materialises, the pair could form a range between 1.1850 – 1.1925. Today, investors’ attention will be focused on the data on the existing home sales for the U.S. (14:00 GMT) and Jerome Powell’s testimony scheduled for 18:00 GMT.

USD/JPY

Current level – 110.75

From the beginning of the week, the dollar rose against the yen and, in the first hours of today’s trading session, the resistance was tested at 110.80, which is a local high. The forecasts are for a short-term correction, after which the mentioned resistance at 110.80 should be breached and the upward movement will most likely continue. The first support is the level of 110.11.

GBP/USD

Current level – 1.3930

The situation with the currency pair is similar to that of EUR/USD and here, the dollar is expected to continue to lose value after its sharp upward movement caused by the decision of the Federal Reserve last week. A short-term correction is also possible, but it should be limited by the first support at 1.3892. An important resistance is the level of 1.4080.