EURUSD Daily Pivots
| R3 | 1.2803 |
| R2 | 1.2872 |
| R1 | 1.278 |
| Pivot | 1.27 |
| S1 | 1.2653 |
| S2 | 1.2574 |
| S3 | 1.2527 |
From yesterday’s analysis, EURUSD broke the neckline resistance at 1.268 and in the process has left an inverted head and shoulders pattern. The timing of this pattern indicates a period of likely correction that could ensue in the EURUSD. The most immediate target for this inverted head and shoulders comes in at 1.2828, which incidentally happens to be a longer term support level that has given way. A breach of this level could see a nice and gradual rounding bottom pattern formation taking place giving more impetus for further gains to the upside. The key risk to EURUSD today is Mario Draghi’s speech and the weekly US unemployment claims.
USDJPY Daily Pivots
| R3 | 109.624 |
| R2 | 109.184 |
| R1 | 108.634 |
| Pivot | 108.194 |
| S1 | 107.644 |
| S2 | 107.204 |
| S3 | 106.654 |
Having cleared the support level between 108.215 and 108.1, we can expect to see further declines in USDJPY, with the next support level coming in at 107.356, which is a longer term support/resistance level. If price does manage to reach this level, we could expect to see a larger descending triangle pattern taking shape which could put the bias back to the upside.
GBPUSD Daily Pivots
| R3 | 1.6372 |
| R2 | 1.6277 |
| R1 | 1.6223 |
| Pivot | 1.6127 |
| S1 | 1.6073 |
| S2 | 1.5977 |
| S3 | 1.5923 |
GBPUSD managed to bounce off the support from 1.6047, invalidating a potential descending triangle pattern. The pair broke above its falling resistance trend line as well as clearing the interim resistance at 1.617. Look for a minor decline back to this level for support for further upside gains towards 1.63 and 1.627. The BoE will be releasing its monthly monetary policy details today, but the policy is widely expected to remain unchanged.
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