Daily Technical Analysis

EUR/USD

Current level – 1.1722

The dollar continues to appreciate against the common European currency and, at the time of writing, the currency pair is confirming the breach of the support level at 1.1731. If confirmed, the breach would increase the downtrend’s momentum, leading the pair towards a test of the next support levels at 1.1700 and at 1.1662. In the positive direction, the first resistance level for the pair is found at 1.1774. This week, investors will focus on the Federal Reserve interest rate decision (Wednesday; 18:00 GMT) and on the data for the initial jobless claims for the U.S. (Thursday; 12:30 GMT).

USD/JPY

Current level – 110.00

The Ninja has been trading in the narrow range between 109.58 and 110.20 for more than two weeks now and, at the time of writing, it is headed towards a test of the upper border of the range. A possible breach of this level would lead the bulls towards a test of the next resistance levels of 110.40 and 110.78. If the test at 110.20 fails, then we’ll most likely witness another couple of days of range-bound trading. A spike in volatility is expected during the announcement of the Bank of Japan interest rate decision (Wednesday; 02:30 GMT).

GBP/USD

Current level – 1.3721

The Ninja has been trading in the narrow range between 109.58 and 110.20 for more than two weeks now and, at the time of writing, it is headed towards a test of the upper border of the range. A possible breach of this level would lead the bulls towards a test of the next resistance levels of 110.40 and 110.78. If the test at 110.20 fails, then we’ll most likely witness another couple of days of range-bound trading. A spike in volatility is expected during the announcement of the Bank of Japan interest rate decision (Wednesday; 02:30 GMT).