EUR/USD
Since the beginning of the week, we have witnessed the appreciation of the single European currency against the U.S. dollar, as at the time of writing the analysis, the currency pair is sitting just below the resistance level at 1.1480. The zone at 1.1362 was easily overcome, with the most likely scenario being for a test of the mentioned resistance zone at 1.1480. During today’s session, market participants will closely follow the announcement of the retail sales data for the eurozone (10:00 GMT), as well as the non-farm payroll change data for the U.S. (13:30 GMT), together with the unemployment rate change data, again for the U.S. (13:30 GMT).
USD/JPY
The depreciation of the U.S. dollar against the Japanese yen was limited above the support level at 114.00 in yesterday’s trading session, and the subsequent appreciation slowed its pace around the resistance level at 115.00. Despite the current consolidation, the most likely scenario is for a test of the aforementioned resistance. A successful breach here could give the bulls the necessary incentive to continue their upward move towards the next significant resistance zone at 115.63.
GBP/USD
The British pound continued to appreciate against the U.S. dollar, and after a successful breach of the resistance zone at 1.3570, market participants are likely to be able to lead the trade up to the next significant resistance at 1.3650. Looking from the higher time frames, we can still see the lower highs and much deeper troughs, and so the overall sentiment at the moment remains negative. In the current situation, if the bears prevail and limit the appreciation below the resistance zone at 1.3650, then a further deepening of the depreciation towards the main support at 1.3370 is not excluded.
EUGERMANY40
At the time of writing, the German index is trying to breach the resistance zone at 15400, with its first attempt so far being unsuccessful. The economic news, mentioned in the EUR/USD analysis, could affect the volatility of the index during the last session for this week. This, in turn, could determine the future move for the EUGERMANY40, although the higher time frames show us that the range move is remaining intact in the channel of 14800 – 16300.
DOW
The appreciation of the U.S. blue-chip stock index was limited around the resistance at 35524 and the subsequent decline may deepen further, if the bears manage to gain enough momentum. The announcement of the non-farm payroll change data for the U.S. (today; 13:30 GMT) will play an important role in determining the future direction of the U.S. index. Increased volatility around that time is also expected.
