EUR/USD – Hourly Chart
The EUR/USD pair rejection at 1.13 levels on Monday, post which a minor sell-off took the pair down to 1.2240 levels. Since then, the movement has been restricted in a narrow range of 1.1230-1.1260 levels. On the hourly chart, the pair is flirting with the 50-SMA located currently at 1.1241 levels, while the RSI has dipped to 47.00 levels. Given the repeated failure to rise above 1.1260 levels coupled with the bearish hourly RSI, the pair is more likely to re-test 1.1221-1.12 levels. However, a fresh demand for Euros can be anticipated in the range of 1.1221-1.12. Moreover, a bounce back from those levels is likely to confirm an inverted head and shoulder pattern on the hourly chart with the neckline resistance located at 1.13 levels. A breakout from the same shall open doors for 1.15 levels. However, immediate gains are likely to be restricted around 1.1357 and 1.1389 levels. On the other hand, a break below 1.12 shall see the pair re-test 1.11 levels.
GBP/USD – Hourly Chart
The GBP/USD pair witnessed a 100-pip rally, as it closed a few pips below 1.51 levels. The bullish RSI divergence on the daily charts has been confirmed despite which the pair may witness a short pullback before making further up move. As the hourly chart shows, the RSI has breached the rising trend line at a time when the pair is struggling to sustain gains above the falling trend line support located at 1.5096 levels. Thus, the pair is likely to re-test 1.5070 levels (hourly 100-SMA) ahead of the UK GDP data today. On the other hand, a fresh demand for Pounds can be anticipated once the pair breaks above 1.5111 (50% retracement level on the hourly chart). In such a case the immediate upside appears capped at 1.5150.
USD/JPY – Hourly Chart
The USD/JPY pair is stuck largely in a range of 117.50-118.70 levels since last five trading sessions. A positive move witnessed yesterday was also capped within the range at 118.50 levels. Thus, the pair declined today test the 5-DMA located at 118.12. The early weakness has also pushed the hourly RSI below 50.00 levels. Still, it is necessary that the pair confirms a break below 118.12 levels on the hourly chart in order to extend the sell-off. In such a case, the pair may fall to 117.50 levels. Meanwhile, a fresh demand for dollars can be anticipated at the current levels owing to the bullish crossover between the 5-DMA and the 10-DMA. The immediate upside is capped at 50-DMA located at 119.02 levels. A more positional bias depends on whether the pair closes below/above 117.50-118.70 range on the daily charts.
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