Following the two repeated unsuccessful attempts around 1.0450, the outlook for the EUR/USD is slightly positive. The Forex pair will likely make further gains, initially targeting the 1.0617 static resistance. A potential violation of the level would open the way for a test of the dynamic resistance line.
It is worth noting that although a correction is probably imminent at this point, the major trend for the EUR/USD is still markedly bearish. As long as the pair keeps trading below the key 1.0617 resistance and within the downward trending channel, the potential upward move should be considered just as a retracement in the bigger picture.
As it can be clearly spotted on the chart, trading on GBP/USD is confined below the downward trending line, and every single test of the latter so far has resulted in a sell-off. The currency pair is expected to continue its protracted slight, targeting the psychological 1.20 at first, followed by the 1.18 major support area. Any potential corrective attempts are likely to lose steam below the 1.2271 resistance.
The USD/JPY was a rather crowded trade yesterday, with some episodes of extreme volatility. At one point, the currency pair was trading at a local high of 150.16, just to face a sharp sell-off, sending it all the way down to 147.27 in a matter of minutes. While we would not go into the fundamental reasons behind that, such a substantial move is clearly impulsive in nature, and as such, it has its technical implications.
As long as trading takes place below 150.16, the USD/JPY is set to extend its slide. The first target of its southbound journey is yesterday’s 147.27 low, followed by the support zone at 144.50.
Disclaimer: The above analysis is based on technical indicators and historical price action. It does not constitute financial advice. Always conduct your research before making any investment decisions.
