EUR/USD pair - Hourly Chart
The EUR/USD pair finished higher on Friday at 1.2527, after bouncing-off from a support level at 1.24 levels. The pair is trading today around 1.2540 levels with the daily RSI slightly under 50.00 levels. On the hourly chart, the pair faced rejection today at the resistance level located at 1.2578, although prices have breached the week-long range of 1.24 – 1.2510. The pair is likely to re-test 1.2510 levels before moving higher as the hourly RSI has turned lower from the overbought zone. Moreover, an upside breach of weeklong range has opened doors for 1.2620 levels, however, a stronger confirmation of a bullish move in the pair would be a breach of 1.2578 resistance levels. Meanwhile, the pair may lose steam if it breaks below 1.2510, thereby re-entering last week’s trading range.
GBP/USD pair - Hourly Chart
The GBP/USD pair ended lower on Friday at 1.5672, after having recovered from a low of 1.5593. The pair is trading today at 1.5699 levels with the daily RSI bearish at 32.00 levels. The hourly chart shows the pair has breached the inverted head and shoulder neckline resistance at 1.5696 earlier today, thereby opening doors for a re-test of 1.58 levels. However, the pair faced rejection around 1.5740 levels today. The pair is more likely to see a renewed buying interest around 1.5696 levels with the hourly RSI bullish at 52.00 levels. Meanwhile, the inverted head and shoulder breakout would fail if the pair dips below 1.5696 levels, opening doors for a fresh sell-off towards 1.56 levels.
USD/JPY pair - Hourly chart
The USD/JPY pair finished on Friday at 116.28 levels after having declined from a high of 116.84 levels. The pair has inched lower today to trade at 115.83 levels, tracking a fall in the US ten-year treasury yields. Meanwhile, on the hourly chart, the pair is trading below the trend line support located at 116.11 levels while the daily RSI, at 44.00, pointing to a further downside in the pair. A fresh selling pressure can be anticipated if the pair breaks below the hourly 100SMA located at 115.77. On the other hand, a fresh demand for the US Dollars can be anticipated only above 116.11 levels, in which case the pair may even re-test the Friday’s high of 116.84 levels. However, given the weakness in the US Treasury yields, the Yen bulls are more likely to push the USD/JPY pair down to 115.20 levels.
EUR/JPY pair – hourly chart
The EUR/JPY pair finished on Friday at 145.66, its highest closing since 30th Dec, 2013. The pair has declined to 145.21 levels today, after hitting a high of 146.55 levels, with the daily RSI overbought at 74.00 levels. So far, the pair has managed to sustain above 145.19 levels, although a fresh demand for the Euros can be anticipated only above 145.71 levels. Moreover, the Yen and the Euro have been oversold against the greenback in the last couple of months. Hence, the likelihood of a sharp recovery in both the currencies provides less scope for a major action in the EUR/JPY pair. Despite this, the cross is likely to move higher towards 147.00 levels, if the EUR bulls manage to push the pair back above 145.71 levels. On the other, downside in the pair appears capped around the 5-day moving average level at 144.63.
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