EUR/USD pair - Daily Chart
The EUR/USD pair finished lower on Friday at 1.2226; well below the latest cyclical low of 1.2247. The sharp decline in the last three trading sessions pushed the daily RSI back below 50.00 levels. Minor bounce is being witnessed today after the pair tested the 200 month moving average located at 1.2231 levels. The pair currently trades at 1.2247 levels with the hourly RSI bearish at 46.00 levels. A fresh demand for Euros can be anticipated if the pair sustains above 1.2247. In such case, the pair may re-test 1.2275 levels. However, given the daily RSI has breached the rising trend line, the pair is likely to be sold on rallies. Meanwhile, the 200 month moving average at 1.2231 shall continue to act as a strong support. Thus, a daily close below 1.2231 shall open doors for a further weakness in the pair. Overall, the pair is likely to trade in the range of 1.2230 to 1.2275 levels today.
GBP/USD pair – Hourly Chart
The GBP/USD pair finished lower on Friday at 1.5631, after having failed to extend gains above the short term moving averages. The pair has recovered part of its losses today to trade higher at 1.5650, although the pair is stuck around the 5-DMA located at 1.5651 levels. On the hourly chart, the RSI has breached the triangle formation to rise above 50.00 levels. Thus, the pair is likely to test the 50% retracement level on the hourly chart located at 1.5664 levels and the hourly 200-SMA located 1.5680 levels. Overall, the GBP bulls are likely to remain on the sidelines till the time the pair trades below the falling trend line resistance located on the daily charts at 1.5690. Meanwhile, a fresh sell-off can be anticipated of the pair fails to rise above 1.5690. In such a case, with the daily RSI bearish at 45.98 levels, the pair may re-test 1.56 levels.
EUR/GBP pair – Hourly Chart
The EUR/GBP pair finished lower on Friday at 0.7821 levels, after having failed to sustain gains above the 0.7832 levels. Another attempt to take out 0.7832 was made today, as the pair clocked a high of 0.7833 levels. However, the gains could not be extended as the pair trades at 0.7829 levels with the daily RSI bearish at 41.11 levels. On the hourly chart, a bullish price-RSI divergence can be seen, although further gains in the pair are contingent on whether the resistance at 0.7832 is breached. A rise above 0.7832 can take the pair to 0.7860 levels, which is also a 23.6% retracement level of the downtrend on the hourly chart. Meanwhile, a failure to confirm a breach of resistance at 0.7832 on the hourly chart, shall open doors for a fresh sell-off towards 0.78 levels.
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