Daily Technical Analysis

EUR/USD

Current level – 1.1686

The worse-than-expected economic data for the United States, which came out yesterday, helped the bulls prevail and the euro recovered quite a bit of its recent losses against the dollar. The currency pair easily violated the resistance level of 1.1663 and, at the time of writing, the pair is testing the resistance of 1.1687. A successful breach would continue the rally and lead the EUR/USD towards the September 2021 highs at around 1.1747. However, if the mentioned resistance withholds the bullish attack, a corrective phase towards the support of 1.1663 will most likely develop. The announcement of the preliminary GDP for Germany at 08:00 GMT and the preliminary GDP for the EU at 09:00 could spark some volatility during today’s session.

USD/JPY

Current level – 113.62

The test of the support of 113.21 was unsuccessful as the dollar recovered some of its recent losses against the yen and, during the early hours of today`s trading, the pair is trading just below the resistance of 113.70. If the bears re-enter the market, a new and successful attempt at breaching the mentioned support could easily strengthen the negative expectations for the future path of the USD/JPY and lead to a decline towards the zone of 111.96. The first target for the bulls is the level of 113.70, followed by the resistance of 114.10.

GBP/USD

Current level – 1.3789

The bulls took control and the GBP/USD overcame the resistance of 1.3759. At the time of writing, a test of the resistance of 1.3830 is the most likely scenario. A successful breach would result in new gains and could easily lead the Cable towards levels of around 1.3900. The first target for the bears is the zone of 1.3759, which is now acting as a support. A breach of the lower level of 1.3715 would draw a more bearish picture for the future path of the pair.