Daily Technical Analysis

EUR/USD

Current level – 1.1558

The bears did not manage to gain enough momentum to successfully violate the zone at 1.1535 and the common European currency regained some of its losses against the greenback. At the time of writing the analysis, the pair is hovering around the level of 1.1559, but a new attack on the mentioned zone at 1.1535 is the most probable scenario. A breach of this zone would strengthen the negative expectations for the future path of the EUR/USD and could easily lead to a move towards the levels from July 2020 at around 1.1415. If the bulls prevail, their first target can be found at the zone of 1.1576, followed by the zone of 1.1622. This week, investors will focus on the consumer price index and the initial jobless claims data for the U.S. (Wednesday; 13:30 GMT).

USD/JPY

Current level – 113.55

The attack on the important support of 113.38 was not successful and the currency pair continued to trade above the mentioned zone. However, a breach of this zone could mark the start of a sell-off and pave the way towards the support of 111.99. In the opposite direction, a successful test of the resistance of 113.70, followed by a violation of the higher target of 114.42, could lead to a change in the current market sentiment and result in more gains for the dollar against the yen.

GBP/USD

Current level – 1.3472

Last week’s sell-off was limited to the level of 1.3427, but the Cable is now struggling to move above the level of 1.3500. If the bulls manage to breach the mentioned resistance, the corrective phase should continue towards the next target of 1.3575. If the bears stop the bulls’ attempt to dominate the market in its tracks, а breach of the support of 1.3427 would be the most likely scenario. A breach of the aforementioned level would strengthen the negative expectations for the future path of the Cable, leading to new losses for the pound against the dollar and a move towards 1.3407.