EUR/USD - Hourly Chart
The EUR/USD pair formed an inverted hammer candle pattern on the daily charts as it finished higher at 1.1588, after easing-off from a high of 1.1680 levels. Not much action is seen today as the pair trades around 1.1588 levels, after having declined from 1.1630 levels. Meanwhile, the hourly chart shows, the sell-off from the high of 1.1630 has pushed the hourly RSI below 50.00 levels. Moreover, the pair has a support of the rising trend line on the hourly chart located at 1.1578 levels. Thus, losses could be extended to 1.1540-1.1490, if the trend line support is breached. However, given the pair has repeatedly bounced back from 1.1540 levels, the likelihood of a sharp weakness in low. Furthermore, the inverted hammer at the bottom of the down trend is indicative of the trend reversal. Hence, a fresh demand for EUR can be anticipated till it trades above 1.1540. The immediate upside appears capped at 1.1640 and 1.1680 levels.
GBP/USD - Hourly Chart
The GBP/USD pair ended lower at 1.5132 levels, after having managed to recover from the low of 1.5076 levels. The daily chart shows the pair is once again stuck largely in a range of 1.51 to 1.52. Though it dipped below 1.51 levels on quite a few occasions, the pair still managed to end the day above 1.51. The range bound activity is also evident from the daily RSI which has flattened around 34-35 levels. Thus, a fresh demand for Pounds can be anticipated above 1.52 levels, which could take the pair to 1.5260 levels. Meanwhile, an hourly chart closing below 1.51 levels shall open doors for a further sell-off towards 1.5042 levels. However, the probability of an upside breakout is increasing each day since the pair repeatedly withstands sell-off to finish above 1.51 levels. Thus, the pair is more likely to break above 1.52 levels. On the other hand, a daily close below 1.51 shall be bearish for the pair.
EUR/GBP – Hourly Chart
The EUR/GBP pair formed an inverted hammer candle pattern on the daily chart as it finished higher at 0.7657 levels, after easing-off from the high of 0.7714 levels. Again, not much action is seen in the pair as it trades at 0.7661 levels, after having hit a high of 0.7680 levels. On the hourly chart, the pair is stuck in the range of 0.7650-0.7680 since the US session yesterday. Thus, a break above 0.7680 is likely to see the pair rise to 0.7710 levels. On the other hand, a break below 0.7650 shall open doors for a re-test of 0.7620 levels. However, given the inverted hammer on the daily chart, the likelihood of a break above 0.7680 is high. Moreover, the hourly RSI, currently at 50.33 levels, shall rise further if the pair manages to rise above 0.7680 levels. Hence, the gains may be extended to 0.7745-0.7750 levels. On the other hand, the bears will regain control if the pair dips below 0.7620 levels.
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