EUR/USD – Hourly Chart
The EUR/USD pair breached the inverted head and shoulder formation on the hourly chart and finished higher at 1.1379 levels on Tuesday. The recovery witnessed in the two consecutive sessions has stalled today as the pair trades slightly under pressure at 1.1365 levels. On the hourly chart, the pair managed to take support at the 100-SMA earlier today. However, the hourly RSI has breached the rising channel, indicating the upside may be temporarily restricted around 1.14 levels. Another attempt at 1.14 is likely, although further upside would require an hourly closing above 1.14. In such a case the gains could be extended to 1.1457 (hourly 200-SMA). On the other hand, another failure to take out 1.14 shall open doors for a re-test of rising trend line support on hourly chart located at 1.1330 levels. Overall, the intraday outlook stays bullish so long as the pair trades above the inverted head and shoulder neckline located at 1.13.
GBP/USD – Hourly Chart
The GBP/USD pair witnessed sharp gains on Tuesday to finish higher at 1.5201, whereby it ran into a brick wall of resistance located in the range of 1.52 to 1.5201 levels. Consequently, the pair is trading modestly lower at 1.5177 levels. Moreover, the pair has been repeatedly restricted around 1.52 levels on closing basis since Jan. 12th. The pair did finish just once at 1.5234, although the gains were quickly erased the very next day. Hence, a convincing daily close above 1.5234 is essential for a further upside move. Meanwhile, on the hourly chart, the pair has managed to sustain above the 23.6% retracement level at 1.5161. The pair has also re-entered the rising channel, therefore immediate gains appear capped at 1.52; the channel resistance. On the other hand, a break below 1.5161 levels shall open doors for a re-test of 1.5120; 38.2% retracement level. Overall, the GBP bulls are likely to stay cautious so long as the pair trades below 1.5234 levels.
USD/JPY – Hourly Chart
The USD/JPY pair finished lower on Tuesday at 117.78 levels, after failing once again near 118.70 levels. The pair currently trades at 117.93, after having hit a high of 118.28 levels. The bearish move witnessed yesterday, once again saw the daily RSI fail to rise above 50.00 levels. The hourly RSI too, has dipped below 50.00 levels. Thus, the pair is likely to re-test 117.30 levels today. Further losses towards 116.00 are likely if the pair manages to breach the lower end of the range at 117.18. On the other hand, a rise above 118.18 (23.6% retracement) shall see the pair re-test 118.70 levels. Overall the outlook stays bearish so long as the pair trades below 118.70 levels.
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