Technical levels to watch closely by the major currency pairs

EURUSD - has defended the next support area around 1.0750. There is a potential double bottom pattern. A breakout above the nearest resistance at 1.078 would be a strong bullish signal and could lead to a leg higher towards 1.083. However there is an overbalance and a new lower high would confirm the returning dominance of the bearish side of the market.

GBPUSD - has turned higher towards the nearest resistance around 1.244 which is currently being respected. There is a bearish momentum and we will probably see another test of the nearest support area around 1.24. If it is broken below, we could see another leg lower towards the next key support area at 1.23. There is an overbalance, the lower bound of the bullish channel has been broken below so bears may once again become the dominate side of the market.

USDJPY -  has stayed below the next resistance area around 111.50. A new higher low has been established after a re-test of the 110.7 area and price has turned higher. We see another higher high. A breakout above 111.50 would be a decent bullish sign but there are no bullish signals right now.

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