EURUSD: Light Bullish But Still Capped By 1.2420 Levels!
The EURUSD still needs to break and hold above the 1.2420 levels on a daily closing basis to push the market for further upside gains, If seen it will target the 1.2475 levels, a halt is likely and it may turn lower from here but a break will aim the 1.2522 levels, we might see hesitation, but above the 1.2522 levels on a daily closing basis will suggest that the correction from 1.2554 has ended at the 1.2154 levels and a higher leg above the 1.2554 levels is likely towards the 1.2615 levels.
On the downside, a failure to hold above the 1.2420 levels on a daily closing basis could mean a return to the 1.2327/1.2297 levels, a halt is likely but a cut through the 1.2297 levels will aim the 1.2175 levels, further down, support stands at the 1.2088/1.2030 levels.
Conclusion: The EURUSD continues to face upside threats above the 1.2297/1.2346 levels but with caution…
1- A daily closing above 1.2420 levels will pave the way to the 1.2522 levels but it might hesitate around 1.2475 before attacking 1.2522 levels.
2- The pair found support at 1.2346 levels yesterday.
The GBPUSD remains bullish above 1.3874 with to the 1.4070 levels. A halt is likely and it may turn lower from here but a break will aim the 1.4150 levels, further upside, resistance stands at the 1.4277 levels.
Any corrective pullback above the 1.3874 is a buying opportunity, minor support comes at the 1.3928 levels.
On the downside, support comes at the 1.3874 levels, a cut through that level will turn the focus on the 1.3755 levels, next support comes at the 1.3615 levels.
Conclusion: The GBPUSD continues to face upside threats above 1.3874 levels.
Note: The pair has printed a nrew support at the 1.3924 levels as shown on the 1 hour chart below. Ab hourly/4 hour closing above 1.3995 will acelerate the expected bullish move, an hourly cloosing below 1.3924 would delay the bullish and open 1.3874 levels.
The USDJPY remains in a recovery mode as long as 106.23/105.45 support holds on a daily closing basis, but recovery above 105.45 should be contained well below the 107.80 levels, a sustained break above that level will turn outlook bullish and pave the way to the 108.77, further upside, resistance comes at the 110.19 levels.
As long as 107.04 resistance holds on a weekly closing basis, the pair remains bearish, a weekly closing above the 107.04 level will bring recovery to the 110.48 levels.
On the downside, below 106.23 will turn the focus on the on the 105.45 levels, a cut through that level on a daily closing basis will restore the downside momentum and pave the way to the 104.28 levels ahead of the 102.85 levels.
Conclusion: The USDJPY continues to face recovery threats above the 105.45 levels with caution…
Note: According the 4 hour chart, the pair is under heavy pressure, alower leg below 105.24 is likely as long as trades below 106.75 levels on a 4-hour closing basis, so any rebound below 106.75 is a selling opprtunity…
Critical events for today: The United States will publish several economic reports, including data on unemployment claims, import prices, and industrial activity in New York and Philadelphia at 12:30 GMT.