Daily Technical Analysis

EUR/USD

Current level – 1.0718

The pair seems to have found a bottom at the support 1.0650, however price action from the last couple of weeks suggests total domination of the bears. Sentiment remains unchanged for a rally of the US dollar across the board, mainly provoked by higher demand in a low liquidity environment. A possible scenario here is to see a retracement impulse towards 1.0960. A slowdown in price action or entering in a range mode would signal that bears are still in control and the pair is headed towards 1.0650. It’s possible for the price to test the lows of 2017 at 1.0520 and a breach there would put EUR/USD parity on the table.

USD/JPY

Current level – 110.01

The greenback managed to recover its positions here as well, but is facing more significant resistance around 111.34. To confirm the sentiment, the price would have to hold on above the support at 107.50. With rising global recession risks, high volatility is expected this week as well. If the rally of the dollar continues with the same power, a breach of 112.00 is possible and the new target would be 114.60.

GBP/USD

Current level – 1.1646

After a devastating week for the sterling the market managed to close below the minimum of 2016 caused by the Brexit referendum. We might see a pullback, but it should remain limited below 1.2200. As with most markets, high volatility can be expected and the main focus for traders would be how quarantined economies will handle recession risks. If markets don’t calm down, a new wave of sell-offs is possible and the price might even test the lows of 1985 around 1.0550.