The USD's recent performance has been a topic of interest, with the currency trading lower but not hitting its lowest levels. Let's delve into the technical analysis of three key currency pairs: EURUSD, USDJPY, and GBPUSD.
EURUSD Technical Analysis
EURUSD saw a significant move in the Asian session, reclaiming the 100-hour Moving Average (MA) at 1.1799. However, the rally faced a strong resistance at 1.1830-1.1832, which is the 50% midpoint of the 2026 range and the falling 200-hour MA. This resistance level proved to be a hurdle, causing the pair to stall and shift momentum back to the sellers.
The price then dropped below the 100-hour MA, finding support at 1.1765-1.1778. Buyers stepped in, pushing the price back near 1.1800, creating a tight battle zone. The market is now poised for a decisive move, with support and resistance levels at 1.1765-1.1778 and 1.1830-1.1832, respectively.
USDJPY Technical Analysis
USDJPY took a sharp downward turn following weekend tariff news, breaking below its 100-hour MA and the 38.2% retracement level at 154.320. This signaled a shift in short-term momentum to the downside.
However, the sell-off encountered resistance near the 200-hour MA at 153.82, causing a hesitation. Buyers regained control, pushing the price back above the 100-hour MA and up towards a confluence area at 154.96, where the 100-day MA and 50% retracement align. Sellers then intervened, forcing a rotation lower.
The pair is now trading near the 100-hour MA, with a focus on this pivotal level. A move below 153.82 indicates continued downside pressure, while a move above 154.96 shifts the bias back to a bullish stance.
GBPUSD Technical Analysis
GBPUSD experienced a decline last week, reaching its key 200-day MA at 1.34426. Despite briefly dipping below this level, the downside momentum stalled, and sellers couldn't break through.
This failure sparked a rebound, with the price climbing back towards the falling 100-hour MA. Today, the pair pushed above this MA but faced resistance in a defined swing zone between 1.3526 and 1.3536. Sellers resisted this area, causing the price to rotate back below the 100-hour MA, targeting the 1.3400 swing level.
The back-and-forth trade has continued since, with the 100-hour MA now serving as a critical barometer. The market's bias leans more bullish when above this MA, while sellers regain short-term control when the price falls below it.
In summary, these technical analyses highlight the dynamic nature of currency markets, where support and resistance levels play a pivotal role in determining the direction of price movements. Traders must stay vigilant and adapt their strategies accordingly.
