EUR/USD – Hourly Chart
The EUR/USD pair rejection at 1.13 levels on Monday, post which a minor sell-off took the pair down to 1.2240 levels. Since then, the movement has been restricted in a narrow range of 1.1230-1.1260 levels. On the hourly chart, the pair is flirting with the 50-SMA located currently at 1.1241 levels, while the RSI has dipped to 47.00 levels. Given the repeated failure to rise above 1.1260 levels coupled with the bearish hourly RSI, the pair is more likely to re-test 1.1221-1.12 levels. However, a fresh demand for Euros can be anticipated in the range of 1.1221-1.12. Moreover, a bounce back from those levels is likely to confirm an inverted head and shoulder pattern on the hourly chart with the neckline resistance located at 1.13 levels. A breakout from the same shall open doors for 1.15 levels. However, immediate gains are likely to be restricted around 1.1357 and 1.1389 levels. On the other hand, a break below 1.12 shall see the pair re-test 1.11 levels.
GBP/USD – Hourly Chart
The GBP/USD pair witnessed a 100-pip rally, as it closed a few pips below 1.51 levels. The bullish RSI divergence on the daily charts has been confirmed despite which the pair may witness a short pullback before making further up move. As the hourly chart shows, the RSI has breached the rising trend line at a time when the pair is struggling to sustain gains above the falling trend line support located at 1.5096 levels. Thus, the pair is likely to re-test 1.5070 levels (hourly 100-SMA) ahead of the UK GDP data today. On the other hand, a fresh demand for Pounds can be anticipated once the pair breaks above 1.5111 (50% retracement level on the hourly chart). In such a case the immediate upside appears capped at 1.5150.
USD/JPY – Hourly Chart
The USD/JPY pair is stuck largely in a range of 117.50-118.70 levels since last five trading sessions. A positive move witnessed yesterday was also capped within the range at 118.50 levels. Thus, the pair declined today test the 5-DMA located at 118.12. The early weakness has also pushed the hourly RSI below 50.00 levels. Still, it is necessary that the pair confirms a break below 118.12 levels on the hourly chart in order to extend the sell-off. In such a case, the pair may fall to 117.50 levels. Meanwhile, a fresh demand for dollars can be anticipated at the current levels owing to the bullish crossover between the 5-DMA and the 10-DMA. The immediate upside is capped at 50-DMA located at 119.02 levels. A more positional bias depends on whether the pair closes below/above 117.50-118.70 range on the daily charts.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
EUR/USD clings to gains above 1.0750 after US data
EUR/USD manages to hold in positive territory above 1.0750 despite retreating from the fresh multi-week high it set above 1.0800 earlier in the day. The US Dollar struggles to find demand following the weaker-than-expected NFP data.
GBP/USD declines below 1.2550 following NFP-inspired upsurge
GBP/USD struggles to preserve its bullish momentum and trades below 1.2550 in the American session. Earlier in the day, the disappointing April jobs report from the US triggered a USD selloff and allowed the pair to reach multi-week highs above 1.2600.
Gold struggles to hold above $2,300 despite falling US yields
Gold stays on the back foot below $2,300 in the American session on Friday. The benchmark 10-year US Treasury bond yield stays in negative territory below 4.6% after weak US data but the improving risk mood doesn't allow XAU/USD to gain traction.
Bitcoin Weekly Forecast: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.
Week ahead – BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.