Currencies Stuck in Narrow Ranges

EURUSD – The EURUSD Trading Between 1.3014 and 1.3071

The EURUSD has failed to advance in any of the directions, and now it is consolidating in a narrow range limited by 1.3014 and 1.3071. The pair on the 4 hour timeframe left the oversold zone due to the consolidation phase, thus it has no technical “barriers” to resume its reduction, at the same time the Parabolic SAR is still above the price chart. Nevertheless, the longer the single currency remains above 1.3020 support area, the more likely the basis formation at this level becomes followed along with the following resistance breakdown and the increase towards the 32nd figure.

It goes without saying, it is not necessary to rush into long positions until the pair forms the basis, since it is premature to talk about the end of the downtrend.


GBPUSD – The GBPUSD Trying to Hold Above 1.5200

The GBPUSD dropped below the 52nd figure, but after testing 1.5183 it increased to the level of 1.5247, which became the yesterday’s high. The bulls failed to breakthrough higher, and the pound returned to the 52nd figure. The pair also failed to develop a downward trend, consequently it spent the whole day in a narrow range yesterday. The pair remains under pressure, which also put by the risks of breakdown of the support with a further decrease towards the 51st figure. However, the inability to overcome the support would cause the basis formation, as well as the increase to the resistance at 1.5290.


USDCHF – Downside Risks to the USDCHF Increase

The USDCHF was drifted near the support at 0.9440. At one point, the pair bulls made their mind to test the strength of the 95th figure. Having verified it, the dollar returned to its initial position. The longer the bulls manage to overcome 0.9500, the higher the risks of the renewed pair’s decrease are. The next support is located at the 94th figure, where the 50 day MA is running.


USDJPY – The USDJPY Slowly but Surely Increasing

The USDJPY dynamics has also left much to be desired, though the bulls clearly feel confident in their further actions and are still focused on the 100th figure. The pair’s increase is limited by the 99.86 level so far, but the Parabolic SAR is still below the price chart and moving averages are pointing upwards, consequently the likelihood of the level’s breakdown is very high. It is wise to remember about the upcoming publication of the U.S. macroeconomic statistics – it might completely change the situation.


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