EUR/USD
The depreciation of the single European currency was limited just above the support zone at 1.1268 during the first trading session for this week. The subsequent appreciation could be seen as a corrective move due to the fact that the bulls failed to gain enough momentum to breach the resistance at 1.1369. If the bears prevail in this situation, then it is possible to witness another wave of depreciation of the euro against the greenback, but this time towards the next more significant support area at 1.1168.
USD/JPY
The situation with the Ninja as a whole remained unchanged at the time of writing, except that the currency pair is trading just above the 115.57 level, which currently plays the role of the first important support. The formation of a range is a possible development in the long run which, however, is expected to remain within the narrow channel between 115.03 and 116.15. Looking at the daily charts, the most likely scenario is for an attack on the resistance zone at 116.15. An unsuccessful breach here could steer any further trading activity towards the lower boundary of the mentioned range.
GBP/USD
The Cable continues to trade in the narrow range between 1.3521 and 1.3616, and since the beginning of the week, we have witnessed two attempts at breaching the lower border of the mentioned range. Despite the unsuccessful breach, the sentiment remains negative – for another attack on the support zone at 1.3521. In the event of a breach, we could expect a decline towards the next significant support at 1.3434. Investors are eagerly awaiting the announcement of the consumer price index data for the UK (today; 07:00 GMT), which could determine the future of the currency pair. Increased market volatility is therefore expected.
EUGERMANY40
Yesterday, the German index managed to almost completely erase the losses that it had suffered in the previous two days, rising by more than 2 percent in the last trading session alone. At the time of writing, the bulls are on the verge of testing the resistance zone at 15459. A successful breach here would give the buyers the necessary incentive to lead the trading activity towards the next significant resistance at 15722. On the other hand, if the bears limit the recovery, then it is possible to witness another drop towards and a test of the support area at around 15075.
US30
The U.S. blue-chip stock index also recovered with more than 1%, following the sell-off that began in the last session of the past week. Limiting the sell-off at 34419 gave the necessary incentive needed for the bulls to head towards the resistance zone at 35065. At the moment, the bears successfully manage to limit the appreciation below the mentioned resistance. Despite the recovery, the sentiment remains rather negative – for another attack on the support level at 34419. The Fed’s meeting minutes, scheduled for today at 19:00 GMT, would have an impact on investors only if their reading of the Fed’s previous meeting from two weeks ago changes as a result of today’s event.
