Daily Forex Technical Analysis: The U.S. Dollar Looks to Move Higher

USD/JPY (102.285)

We should see a deep decline back to 100.80 then 100.60 support cluster zone. However, even if this happens, we expect that area to hold bringing more gains.

Any move above 103.10 should gap the pair higher to 104.10. We have strong resistance all through that area and expect gains to be limited extending the consolidation period.

EUR/USD (1.33647)

The euro is continue to pull back against the strengthening U.S. dollar. However we are still above 1.3330, the temporary low, as well as a key support at 1.33460.

We have a strong resistance level at 1.345. As long as this holds we expect the EUR/USD to push lower to test 1.3210 at some point. Alternatively, if 1.3210 holds, we should see a rebound. A move above 1.345 targets the key round level at 1.35.

GBP/USD (1.68034)

The GBP/USD seems to have hit a bottom at 1.6757 and then recovered. We could now see some sideways range trading and any recovery should be held in the area of 1.6887 bringing more declines.

We have a medium term high (top) near 1.72/1.1795 that needs to be contended with before any meaningful recovery. A move back below 1.6757 will then target a key support zone at 1.6697/1.67. A break of 1.6887 will confirm a short term bottom bringing a stronger recovery.