EUR/USD likely to struggle around 1.2677-1.2680 levels

EUR/USD

The EUR/USD pair finished at 1.2646 yesterday, after having faced rejection around 1.2680 levels. The pair is trading slightly up today near the 50 SMA level of 1.2660 on the hourly chart. Meanwhile, the hourly RSI has breached 50.00 levels on the upside, opening doors for a further strength in the Euros. However, the pair is likely to struggle around 1.2677-1.2680 levels. Moreover, prices have rebounded from 1.2630 levels for a second time this week, leading to a double bottom formation on the hourly charts with a neckline of 1.2677 levels. Thus, a breach of the neckline shall open doors for a re-test of 1.2720-1.2730 levels today. The daily RSI, at 42.90, may rise above 50.00 levels if the pair manages to rise above 1.2730. On the other hand, failure to rise above 1.2680 levels shall reinforce bearish expectations and push the pair below 1.26 levels.

GBP/USD

The GBP/USD pair finished at 1.6029 yesterday, after having recovered from a low of 1.5994. The pair trades slightly higher at the hourly 50 SMA level of 1.6042. The pair is struggling to rise above 1.6042 despite the hourly RSI hovering above 50.00 levels. Moreover, the bulls are likely to have a say if the pair manages to rise above 1.6066, which happens to be the 38.2% retracement level of the 300-pip rally witnessed last week. The pair is also trading below the 5-day and the 10-day moving average levels of 1.6058 and 1.6079 respectively. Moreover, the daily RSI, at 42.10, points to a further sell-ff in the pair. Meanwhile, bears are likely to come-in strong below the 61.8% retracement level of 1.5993. The pair is likely to trade in a sideways manner ahead of the UK GDP data.

EUR/GBP

The EUR/GBP pair managed to sustain above 0.7880 yesterday, after having hit a low of 0.7870 levels. The pair trades around the 5-day moving average level of 0.7895 today, with the daily RSI just below 50.00 levels. On the hourly chart, the RSI at 52.76, is bullish although the pair has been struggling around 0.7900 levels since the Asian session. Moreover, the pair is stuck between 0.7906 and 0.7872, which happen to be the 50.00% retracement level and 61.8% retracement level of a 282-pip rally witnessed in the first half of the current month. Thus, fresh selling pressure can be anticipated on the pair breaches 0.7872 levels on the hourly chart. Meanwhile, a daily close above the 50-day SMA level of 0.7917 is essential for the bulls to come-in strong.

USD/JPY

The USD/JPY pair finished at 108.27 levels yesterday, breaching the resistance levels of 107.60 and 108.00 on its way up. The pair is hovering around 108.00 levels today , down from a high of 108.33 since the hourly RSI hit the overbought zone. However, the pair has strong support around 107.80 levels with the daily RSI well above 50 levels pointing upwards. The pair may consolidate in a range of 107.90-108.10 before resuming a further up move. Moreover, the pair has failed to rise above 108.26, which happens to be the 61.8% retracement level of the recent down trend. Thus, a fresh demand for the dollars can be anticipated above 108.26 levels, while the bears may come-in if the pair falls below 107.80 levels.