EUR/USD, USD/JPY, GBP/USD Pivot Points, TA – July 29

EURUSD Daily Pivots

EURUSD (1.107): After the break out from the falling price channel EURUSD saw a brief retest back to the break out level and is currently posting bullish bars. The rally is likely to continue as the single currency could most likely test the previous resistance at 1.1135 through 1.117 region. Only a break above 1.117 will pave way for EURUSD to make more gains, while to the downside, price action will have to fall back into the price channel for further declines. Therefore, EURUSD could most likely head into a period of consolidation between the current levels ahead of a break out..

USDJPY Daily Pivots

USDJPY (123.4): USDJPY formed an inside bar yesterday and points to a potential break out in either direction. On the intraday charts yesterday’s rally was capped near the lower end of the range at 123.7, marking a test of the break out level. Prices need to decline back to 123 in order to dip further to test the previous support at 122.65, while to the upside, a break above 124 is needed to post new gains. Regardless, we anticipate a test to 124 level of support/resistance in the near term.

GBPUSD Daily Pivots

GBPUSD (1.561): GBPUSD has posted two straight sessions of gains after reversing off the lows near 1.552 on the daily charts. Resistance comes in at 1.57525 on break of previous interim highs at 1.563. Price action has broken off the falling price channel but there are quite a few resistance levels up to 1.57 and the Cable is likely to struggle to break above 1.57. Most important 1.565 is an important resistance which has held up on past three tests of resistance but considering that the current attempt to break 1.565 comes after a test of support below 1.55165, we could expect a potential break. Failure to do so could see GBPUSD fall back to the support zone at 1.5516 through 1.5455.