EUR/USD likely to re-test 1.25 levels

EUR/USD

The EUR/USD pair finished at 1.2651 levels yesterday after having failed to rise above 1.2740 levels. The pair is trading around 1.2640 levels, after the prices found support near 1.2630 levels. A look into the weekly charts indicates also multiple support levels in 1.26-1.230 range. Moreover, the hourly RSI dipped into the oversold zone after the yesterday’s sell-off. Thus the pair is taking a breather around 1.2640 levels. The pair is likely to re-test 1.25 levels supported by the bearish daily RSI, currently at 41.94. Furthermore, the 5-day and the 10-day moving averages have given a bearish crossover. Still, the oversold nature of the hourly RSI may lead to a minor technical correction up to 1.2660-1.2680 levels, where a fresh selling pressure can be anticipated.

GBP/USD

The GBP/USD pair finished just below the support level of 1.6052 yesterday, breaching through the 5-day and the 10-day moving average levels on its way down. The sell-off confirmed the failure of the daily RSI, currently at 42.32, to rise above 50.00 levels indicating further bearishness in the pair. Meanwhile, the pair hovers around 1.6060 levels today, while the hourly RSI has flattened out around 44 levels. A fresh selling pressure can be anticipated once the pair falls below 1.6029 levels, which also happens to be the 50% retracement level of the 300-pip rally witnessed since last week. Moreover, the hourly and the daily RSI will start sliding once the support level of 1.6029 is breached. Meanwhile, the bulls are likely to come-in only above 1.61 levels.

EUR/GBP

The EUR/GBP pair declined yesterday after having faced rejection at a 50-day moving average level of 0.7925 for the second consecutive session. The pair is trading near a a critical support level of 0.7873, below which prices can fall to 0.7850 levels. The daily RSI, at 45.85, points to a further sell-off in the pair. Moreover, it appears the pair is unlikely to see a breather since the hourly RSI is yet to hit the oversold region. Meanwhile, the bulls are unlikely to have say so long as the pair trades below 0.7905 levels, which also happens to be a 50% retracement level of 282-pip rally witnessed in the first half of the current month.

USD/JPY

The USD/JPY pair is trading near 107.30 levels, after the prices failed to extend gains above 107.40 levels yesterday. The pair has faced rejection on multiple occasions around 107.40-107.60 levels since last week. Moreover, the hourly RSI has turned flat around 60.00 levels while the daily RSI is stuck at 50.00 levels unable to rise further. A fresh demand for US dollars can be anticipated once the pair takes out 107.40-107.60 levels, pushing the daily RSI well above 50 levels. On the other hand, bears may take come-in if the pair falls below 10-day moving average level of 106.92. Moreover, the pair appears exhausted after multiple failures to rise above the technical resistance, which is likely to overshadow the bullish crossover between the 5-day and the 10-day moving averages.