The EURUSD Still Trying to Increase to 1.4000
The EURUSD bulls keep trying to test the psychological level 1.4000. Despite the rather low market activity yesterday, the pair, having retreated from the support level of 1.3879, rose to 1.3947. Here speculators` enthusiasm vanished and the pair slowly retreated to the support at 1.3919. On the whole, prospects of the EURUSD look constructive. It is hardly possible to mention overbought of the pair, so a rise to 1.4000 is quite possible. At the same time the euro does not have any objective reasons for the development of large-scale rally, which casts doubt on its ability to overcome the indicated psychological barrier. The nearest support is at 1.3833-1.3800, the next one is at 1.3720. Since currently there are no reasons to sell the pair actively, then attempts to decline are likely to be limited by the last level.
Downside Risks of the GBPUSD Are High
The GBPUSD continues trading above 1.6600 that preserves constructive perspectives for the pair. Yesterday, a decline to this support attracted interest to buy, and the pound increased to 1.6665. Now pullbacks are limited by the 1.6629 level, where demand still remains. The pair is trading between a 20- day MA and a 50-day MA on a daily chart, which are at the levels of 1.6672 and 1.6585. These levels should be considered as resistance and support. A breakout through one of them will indicate a further direction of the pair. Despite a positive sentiment, downside risks below 1.6600—1.6585 still look high.
The USDCHF Can Continue Declining
Yesterday’s rise in the USDCHF was interrupted at the level of 0.8755, from which the pair fell to 0.8713. Pressure on the dollar persists along with the downside risks to 0.8568. A rise above the 88th figure will weaken the bearish momentum, but only a rise above 0.8900-0.8930 can become confirmation of basis formation and a trend reversal. The main threat to the Franc is the Swiss National Bank, which can intervene to stop growth of the national currency.
The USDJPY Declining Again
Yesterday, the USDJPY corrected after a last week’s decline. Recovery was not marked as large-scale and was limited by the 101.94 level. Today, the dollar returned to the support level 101.59, its breakout will lead to a fall and testing current lows at the 101.20 level. If the bulls can defend support, then they will have an opportunity to return the pair on a growth way. The nearest resistance is at the 101.94 level, the next one is around 102.20-102.60.
