EUR/USD is trading slightly weak today

EUR/USD

The EUR/USD pair rose above 1.28 levels yesterday after the disappointing US retail sales data in the US pushed Treasury yields lower. The pair is trading slightly weak today as the hourly RSI indicates the pair was overbought. The pair can fall to 1.2760 levels, where a fresh demand for the Euros can be anticipated. Moreover, the pair breached a critical resistance of 1.2790 on the daily charts yesterday, opening doors for a re-test of 50-day moving average level of 1.2970, if the prices manage to rise above the immediate resistance of 1.2859. Meanwhile, the daily RSI has crossed 50.00 levels and currently stands at 51.24 levels . The short term moving averages – 5 SMA and 10 SMA – have given a bullish crossover on the daily chart, increasing a probability of a further up move in the pair. A technical correction in the European equities may add to the bullishness in the EUR/USD pair today.

GBP/USD

The GBP/USD pair finished above 1.6 levels yesterday, however the prices are back below 1.6 levels today to trade at 1.5960. The correction witnessed yesterday was driven by an oversold RSI on the hourly chart, which rose above 50.00 levels once the pair took out the resistance level of 1.5950. However, the pair has failed to sustain gains above the 5-day moving average level of 1.6007 today, leading to a fresh sell-off. The daily RSI is also struggling to rise above 40.00 levels since last week or so. The pair is likely to take out the immediate support of 1.5950 levels as the hourly RSI has declined below 50.00, pointing to a further downside in the pair. A fresh sell-off below 1.5950 can take the pair down to 1.59 levels today. On the contrary, fresh demand for pounds can be anticipated once the pair confirms a breach of resistance level of 1.6007 on the hourly chart.

EUR/GBP

The EUR/GBP pair rose for a third straight session yesterday, taking out the 100-day moving average level of 0.7956 on its way up. An almost 200-pip gain witnessed in the last three days has pushed the daily RSI, currently at 67.50, close to the overbought levels. Meanwhile, the hourly RSI has already started declining, after having reached the overbought zone yesterday. Moreover, the pair is trading slightly weak today after facing a stiff resistance in a range of 0.8035-0.8050. A technical correction, after a three-day rally, can see the pair falling to 0.7980 levels today. However, a fresh demand for the Euros can be anticipated around 0.7980-0.7960 as the daily RSI is yet to hit the overbought zone. The bears may come back only if the pair confirms a breach of 0.7960 levels on the hourly chart.

USD/JPY

The USD/JPY pair finished below the 50-day moving average level of 106.04 yesterday tracking a sharp decline in the US ten-year treasury yields. However, the pair is trading up at 106.28 levels, since the pair was oversold as indicated by the hourly RSI. The correction can take the pair to 106.65-106.75 levels today, post which a fresh selling pressure can be anticipated since the daily RSI hovers below 50.00 levels. Moreover, the pair may reverse the trend if it manages to finish above 106.04 levels today. On the contrary, a fresh sell-off can be expected if the pair finishes below 106.04 levels today.