The EURUSD Approaches the 37th Figure
The EURUSD ended the past trading week near the resistance around 1.3650. Yesterday, it continued its recovery gradually but steady, having broken past week’s highs, and reached the 1.3697 level. In the short run, its recovery was rather expected, but one should not mean improving prospects of the single currency while it is trading below 1.3700-1.3720. A breakout of the latter level will weaken bearish pressure and give a reason to assume a rise to 1.3800. Until the level of 1.3720 is not broken, the risks of a resumption of a decline will be kept.
The GBPUSD Breaks Subsequent Highs
Demand for the British pound is kept. In pair with the U.S. dollar it ended the week near the resistance around 1.7051. Yesterday, it was broken, and the rate increased to 1.7115 still holding bulls` onslaught. A breakout of current highs should be considered as a positive factor for the pound, but its overbought does not inspire to buy at current levels, and yesterday’s rise could happen amid low liquidity. It is worth to consider if the pair in the coming days consolidates above broken highs.
The USDCHF Drops Below 0.8900
The U.S. dollar in pair with the Swiss franc has failed to overcome a psychological level of 0.9000 that led to profit taking and a decline in the pair to the 89th figure, close to which a weekly closing occurred. Yesterday, the decline resumed, and the dollar fell to 0.8861. Thus, upward momentum has been clearly weakened, and in the short term the U.S. currency could test 0.8855-0.8820. However, while the USDCHF is trading above the 88th figure, the probability of resumption of growth will continue.
The USDJPY Testing 101.22
Last week the USDJPY bulls broke the support around 101.59, and the pair closed weakly below it near the next support around 101.22. Yesterday, bears did not leave attempts to test the level, but it still continued to cope with its task. In turn, growth attempts are limited by the level of 101.53. A negative sentiment is kept, but bears should fight for 101.22. They could test the support around 100.68 if they break this level only. Resumption and ability to consolidate above 101.59 could weaken bearish pressure.
