The EURUSD Rebounded from Fresh Lows
As we have expected, the loss of the support around the 23rd figure and weekly closure below it led to testing the support around 1.2261. Moreover, bears made an attempt of its breakout, but, as we also have expected, oversold of the pair provoked the rebound higher after the level of 1.2247 was tested. Thus, the euro managed to recover to the level of 1.2344, which provided a strong resistance at this stage. Despite the inability of bears to break the support of 1.2261 after strong nonfarms and the recovery of the pair, there are still no reasons for bulls to rejoice concerning the euro. It still needs to rise and consolidate above 1.2500-1.2531 for easing the downward pressure. Until that time the risks of the decline resumption will be kept.
The GBPUSD Trying to Develop Correction
The GBPUSD finished the last week with a breakout of the support around 1.5605, and started this week with a fall to the level of 1.5541. However, bears failed to consolidate below the broken support because there was a rebound above after testing of 1.5541, as we have expected, – to the resistance around 1.5679. If the pound fixes above the 56th figure, we should expect testing the resistance around 1.5713 in the short term, the breakout of which is important for weakening of the descending dynamics and testing the resistance at the point of 1.5766. The decline below 1.5605 may signal about the resumption of the downtrend.
The USDCHF May Test 0.9666
It seems that the USDCHF is ready to develop a downward correction. Bulls made an attempt of a breakout of the resistance around the 98th figure yesterday, but offers located at the level of 0.9817, returned the pair below 0.9800 to the support around 0.9737. Today it is under the pressure again, that may lead to the breakout of this support and the dollar’s decline towards the support around 0.9666. Its loss will signal about the development of a larger correction.
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The USDJPY Fell Below 120.00
As we have repeatedly warned, the USDJPY is overbought, that have provoked profit-taking after reaching of the recent highs of 121.68. Having been under the pressure, the dollar fell to the support around 120.20 yesterday. Today it was broken and the dollar fell to 120.00. The inability to consolidate above the important broken psychological level of 120.00 increases the risk of a larger downward correction. In turn, bears need to consolidate below 120.00 for it. The return above will cast doubt on the ability of the yen to develop a correction.
