Technical Outlook for EURUSD, GBPUSD, and USDJPY
The article provides a detailed technical analysis of three major currency pairs: EURUSD, GBPUSD, and USDJPY, as the US dollar begins the trading session with mixed signals. The analysis highlights key levels and potential market movements as traders look for clearer directional trends.
EURUSD Analysis
The EURUSD pair is currently trading within a narrow range of 70 pips, indicating a lack of conviction in the market. The high for the day reached 1.1830, which is a significant resistance level, alongside 1.1834. A sustained breakout above this zone could shift the bullish bias towards higher targets at 1.1860 and 1.1889.
On the downside, the price has dipped below the 200-hour moving average (MA) at 1.1801, but found support at the 100-hour MA near 1.1793. If the price falls below this support, traders will look towards levels at 1.1765–1.1778, 1.1741, and 1.1691. A break below the weekly floor could increase downside momentum.
Overall, the EURUSD remains range-bound, but pressure is building for a potential breakout.
USDJPY Analysis
The USDJPY pair is experiencing a correction after a failed breakout attempt. The price had previously surged above the 156.20–156.28 resistance area but could not maintain the momentum, leading to a decline. Currently, the price is testing the former support zone, which now acts as resistance.
If the price can reclaim the 156.20–156.28 zone, buyers may regain control. Conversely, if it remains below this level, sellers will maintain the upper hand, with the next downside target being the rising 100-hour MA near 155.47.
The outlook for USDJPY is bearish unless buyers can push back above the critical resistance zone.
GBPUSD Analysis
The GBPUSD pair initially broke above the previous day's high, reaching 1.3575, but faced resistance near the swing zone of 1.3582–1.3590. The price has since rotated lower, breaking below the 200-hour MA at 1.3526 but found support at the rising 100-hour MA at 1.3512.
Currently, the pair is trading above the reclaimed swing area of 1.3536, which keeps buyers in control. A move back below this level would shift focus towards the 100-hour MA. A breakout above 1.3575 would bring the resistance zone back into play.
The GBPUSD outlook indicates active buyers, but further upside momentum requires clearing the 1.3580 area to strengthen the bullish case.
North American Session Focus
As the North American session approaches, all three currency pairs are at critical inflection points. The EURUSD remains compressed within its weekly range, the USDJPY is testing sellers after a failed breakout, and the GBPUSD is attempting to hold onto reclaimed support. Traders should watch for potential range expansion and momentum confirmation around the key technical levels discussed.