Bears to regain control of EUR/USD if the pair fails to sustain 1.28

EUR/USD

The EUR/USD pair finished at 1.28 levels yesterday after prices bounced back from the 10-day moving average level of 1.2734. The pair is trading at 1.2819 levels, having recovered from a low of 1.2788 levels. Moreover, the pair failed to sustain below the 5-day moving average level of 1.2805 as the daily and the hourly RSI continued to inch higher from the 50.00 levels. However, the Euro bulls have struggled to take the pair above 1.2840 levels on multiple occasions during the last week. Hence, fresh demand for Euros can be anticipated once the pair rises above 1.2840 levels, which can take the pair to 1.2880-1.2890 levels. Meanwhile, bears shall regain control if the pair fails to sustain above 1.28 levels. Off-late the pair has been performing well during the bouts of risk aversion in the equity markets. Thus, the pair is likely to trade strong today since the European equity futures and the US equity futures are pointing to a further sell-off in the markets.

GBP/USD

The GBP/USD pair finished at 1.6163 levels yesterday, clocking a fourth-straight day of gains despite which the daily RSI remained below 50.00 levels. The pair is trading higher at 1.6181 levels, slowly inching towards the 1.62 mark, although the hourly RSI appears exhausted around 70.00 levels. GBP/USD may rise to 1.6220-1.6230 levels, whereby prices may struggle due to the overbought nature of the RSI on the hourly charts. A failure to rise above the technical resistance of 1.6228, is likely to push the pair back to 1.6160 levels. On the other hand, bears may regain control if the prices fall below 1.6160 levels, in which case the daily RSI, too, would fail to rise above 50.00 levels. A fresh demand for Pounds can be anticipated once the pair confirms a breach of 1.6228 levels on the hourly chart.

EUR/GBP

The EUR/GBP pair has managed to rise above the 50-day moving average level of 0.7925 today, from the yesterday’s low of 0.7918 levels. The rise in the pair today is well supported by the hourly RSI which has breached 50.00 levels on the upside. However, the prices are struggling around 0.7940 levels, above which the pair can rise to 0.7960 levels. Moreover, the daily RSI still hovers above 50.00 levels despite a sharp fall in the EUR/GBP pair witnessed in the last three trading sessions. Hence, the pair is likely to rise above 0.7960 levels today. Meanwhile, the bears may come back strong if the pair falls below 0.7900 levels, which shall push the daily RSI below 50.00 levels.

USD/JPY

The USD/JPY pair has declined today to trade at the 50-day moving average level of 106.40, after prices failed to sustain gains above 107.00 levels. Moreover, a 150-pip rebound witnessed last week, was largely driven by the oversold nature of the RSI on the hourly charts. On daily charts, too, the RSI has failed to rise above 50.00 levels as prices declined to 106.40 levels today. The pair is likely to consolidate in a range of 106.70-106.30 as the hourly RSI has once again hit the oversold mark. A fresh selling pressure can be anticipated if the pair finishes the day below 106.40 levels. Meanwhile, the dollar bulls are unlikely to have a say so long as the pair trades below 106.80 levels.