EUR/USD – Hourly Chart
The EUR/USD pair managed to sustain above the hourly 100-SMA levels yesterday, leading to a positive close at 1.1324 levels. The pair also ended above the 5-DMA levels; consequently the pair has inched higher today at 1.344 levels. On the hourly charts, the RSI has turned bullish at 59.34 levels, while the pair trades above the inverted head and shoulder neckline (extended) at 1.1317 levels. Thus, the pair is more likely to test 1.14 levels today. Further gains depend on whether the pair confirms the breach of resistance at 1.1423 on the hourly charts. In such a case, the pair could rally top 1.15 levels. On the other hand, a failure to rise above 1.14 is likely to see the pair consolidate in the range of 1.1340-1.14. The EUR bears would come-in once the pair dips below the 5-DMA at 1.1318 levels.
GBP/USD – Hourly Chart
The GBP/USD pair achieved the hourly chart double bottom reversal target at 1.5080 and further extended the losses to test 1.5018 levels. The pair is witnessing a minor recovery as it trades 1.5083 levels; a few pips away from the 50% retracement located at 1.5088 levels. On the hourly charts, the RSI has breached the falling trend line, however the pair still trades below the falling trend line resistance at 1.5094 levels. Thus, a fresh demand for Pounds can be anticipated above 1.5094 levels. In such a case, the pair is likely to test the hourly 50-SMA at 1.5128 levels. On the other hand, a failure to rise above 1.5093, shall push the pair down to 1.5056 (61.8% retracement) and 1.5020 levels. However, the likelihood of the pair rising above 1.51 levels is high, given the hourly RSI has breached the falling trend line.
USD/JPY – Hourly Chart
The range bound movement continues in the USD/JPY after it ended at 118.31 levels yesterday. Again the losses were capped around 117.40-117.50 levels, while the gains were capped at 118.50 levels. The closing above 118.00 did little to help the pair make further gains, as it is trading lower at 117.83 levels. Furthermore, the daily RSI has failed repeatedly to rise above 50.00 levels despite the pair rebounding from 117.40 levels on multiple occasions. On the hourly charts, the pair is back below all major averages, while the RSI has dipped to 41.87 levels. Thus, the pair is once again likely to test 117.40-117.20 levels today. Moreover, the likelihood of a downside breakout from the range is high since the weekly and the daily chart shows bearish crossover between 5-MA and 10-MA. In such a case, the pair could drop quickly to 116.00 levels after having consolidated in approximately 120 pip range for seven straight sessions. On the other hand, USD bulls would come-in strong above the 50-DMA located at 118.83 levels.
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