EURUSD trading sideways around 1.28, could rally to 1.2887

EUR/USD

The EUR/USD pair finished above 1.28 levels yesterday, having recovered from the sell-ff which saw the pair testing the 5-day moving average level of 1.2737. The sharp recovery also ensured that the daily RSI remained comfortably above the 50 levels. The pair is trading in a sideways manner around 1.28 levels today. The hourly RSI has held above 50.00 levels, although a fresh demand for the Euros can be anticipated only above 1.2840 levels. Moreover, the pair can rally to 1.2887 levels today if the prices confirm a breach of resistance level of 1.2840 on the hourly chart. The rise in the single currency also depends on the performance of the European equity markets, which are likely to witness a technical correction today. Meanwhile, the bears are unlikely to have a say today, as long as the pair trades above the hourly 50SMA level of 1.2775.

GBP/USD

The GBP/USD pair managed to finish above 1.6 levels, rising through the 5-day and the 10-day moving average level on its way up. The pair is trading flat today, after having tested the 10-day moving average level of 1.6072. Moreover, the pair is stuck around the 1.6106 resistance level, while the daily RSI hovers around 43.00 levels. On the hourly chart, the pair is struggling to take out 1.61 levels as the hourly RSI turned downwards from the overbought zone. We could see the pair falling back to 1.6060 levels if it fails to rise above 1.61 levels post the European equity markets opening. The losses may be extended to 1.6020 levels if the prices breach through an immediate support of 1.6060. The hourly RSI, currently at 61.29, shall start declining rapidly once the prices fall below 1.6060 levels.

EUR/GBP

The EUR/GBP pair finished below 0.8000 levels yesterday, although prices managed to hold above the 100-day moving average level of 0.7954. The pair is trading around 0.7960 today, well supported by the 100 SMA level of 0.7954. Moreover, the pair was due for correction since the hourly RSI had hit the overbought zone. However the daily RSI, still holds above the 50.00 mark, which can bring the bulls back in action. On the hourly chart, prices have managed to sustain above 0.7960 levels, which can lead to a re-test of 0.7986 levels. However, bears may take control of the pair, if it declines below 0.7952 levels . On the contrary, a breach of the resistance level of 0.7986, can push the pair to the yesterday’s high of 0.8048.

USD/JPY

The USD/JPY pair managed to finish above the 50-day moving average level yesterday, despite which the prices are trading weak today. The pair has failed to sustain above the 5-day moving average level of 106.46 and currently trades at the 50-day moving average level of 106.21. Moreover, the weakness is in line with the daily RSI, which hovers well below the 50.00 levels. On the hourly chart, the pair is struggling to rise above 106.50 levels as the RSI appears weak near 50.00 levels. The pair may decline to 105.50 levels once the prices fall below the support level of 106.21. The ten-year treasury yields are declining ahead of the European session, opening doors for a further weakness in the USD/JPY pair.