EUR/USD pair – Hourly chart
The EUR/USD pair ended lower yesterday at 1.2450, after facing rejection at the technical resistance at 1.2578 levels. The pair trades at 1.2472 levels today, with the daily RSI bearish at 42.93 levels. Moreover, the pair has re-entered the last week’s trading range of 1.2410-1.25. Yesterday’s close reinforced the bears since the pair ended below the short-term moving averages – 5SMA and 10SMA. The prices are currently struggling near 5SMA level at 1.2472. Meanwhile, on the hourly chart, the pair has repeatedly failed to rise above 1.2477 levels, while the RSI at 47.00 points to a further slide in the pair. Thus, the pair more likely to test 1.2440 and 1.2410 levels today. On the other hand, a daily close above 1.2530 shall bring the EUR bulls back in the game.
GBP/USD pair – Daily Chart
The GBP/USD pair breached, but failed to sustain above the trend line resistance at 1.5710 yesterday, leading to a fresh sell-off that pushed the pair down to 1.5640 levels. The pair is trading slightly higher around 1.5655 levels today with the daily RSI oversold at 29.62 levels. Meanwhile, on the hourly chart, the pair appears poised to take out the 50SMA level of 1.5660, as the RSI, at 50.43, has turned bullish. Thus, the pair is more likely to re-test 1.5710 levels today, although further gains depend on the nature of the UK CPI data release. Technically, a daily close above 1.5710 shall strengthen the bulls and open doors for 1.5830 levels. On the other hand, a fresh selling pressure can be seen if the pair struggles near 1.5660 levels, which could push the pair down to 1.56 levels.
EUR/JPY pair – Daily Chart
The EUR/JPY pair ended lower yesterday at 144.98, after having failed to sustain gains above 146.00 levels. The pair currently trades higher at 145.58 levels, with the daily RSI overbought at 74.11 levels. On the hourly chart, the pair is back above the 50SMA level currently located at 145.25 levels, while the RSI at 63.00 is pointing to a further upside in the pair. However, a fresh selling pressure can be anticipated, so long as the pair fails to breach 145.71 levels on the daily closing basis. Given, the overbought daily RSI, the Euros may be sold on rallies. The upside in the pair appears capped around 146.50 levels, while the pair may drop to 144.75 levels if it struggles near 145.71 levels.
USD/JPY pair – Daily Chart
The USD/JPY pair ended slightly higher yesterday at 116.45, after swinging on both sides, thereby forming a Doji candle on the daily chart. The activity indicates indecision after the rally of more than 800 pips since the last week of October. The pair currently trades at 116.63 levels, with the daily RSI overbought at 82.59 levels. Meanwhile, the hourly chart shows, the pair has struggled to sustain gains above 116.80 levels since Friday. The hourly RSI, though bullish at 59.00, appears to be losing steam. Hence the pair is more likely to test 116.00 levels. Moreover, the pair has not closed below the 5-day moving average level since Oct 22. Thus the probability of a technical correction is high. The downside in the pair appears restricted around the 10 daily SMA level at 115.56.
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