Due to the long fall the EURUSD is showing signs of severe oversold now that provoked the development of fully expected correction of the pair yesterday. Having found the support around the 25th figure, it began to rise, that lasted until the rate didn’t reach the level of 1.2652, and a little later – the mark of 1.2675. The drops are limited by the support around 1.2605 now. Despite the returning of the euro above the broken earlier level of 1.2825, bulls should not be too optimistic. However, if the euro is able to consolidate above 1.2605-1.2623 and break the current resistance, then we can expect testing of the resistance in the 27th figure. The loss of the support at the level of 1.2623-1.2605 will lead to testing of 1.2571. In order to ease the downward pressure the euro must rise above 1.2764.
The fall of the GBPUSD seemed to be excessive, that’s why yesterday’s correction of the pair was quite logical and expected. It found the support around 1.5953, from which rebounded to the level of 1.6098 yesterday. There was a decline to the level of 1.6020 in the Asian session, but soon the growth was resumed and the pound rose to resistance around 1.6118. Its breakout will allow to test the level of 1.6131, the growth will jeopardize the resistance of 1.6173. The downtrend is kept at this stage, and the pound resumption may be used to open short positions.
The dollar paired with the Swiss franc could not go back and consolidate above the level of 0.9666 yesterday. Amid the profit taking on the American, the pair was declining all the day until it reached the support around 0.9566. After testing it there was a decline to the level of 0.9618, which provides the resistance this moment. Undoubtedly, yesterday’s decline was corrective, and the correction resumption will depend on the ability of bears to overcome the support of 0.9566-0.9555. In case of the breakout the dollar will fall to 0.9516-0.9500. As long as it is traded above 0.9566 / 55, the risks of the growth resumption will remain very high.
The level of 110.00 managed to provide the decent resistance to the dollar paired with the Japanese yen. Despite the weekly close near this point, the beginning of a new trading week was marked by the decline in the pair, as a result of which bears were able to test the support around 108.65. After the drop to 109.23 the decline resumed and the USDJPY fell to 108.38. This decline is corrective, the 108-I figure may become its next target. Its breakout will lead to the fall to 107.39-107.00. If the dollar manages to consolidate above the current support, it can return beyond the 109th figure.
