EUR/USD
The market corrected yesterday’s panic sell-offs as the pair managed to bottom out at 1.1107. This area can be defined as a weekly support. The previous support at 1.1170 was breached, but the session managed to end above this level. Today, it is possible that this zone will be reaffirmed as valid if the pair manages to close above it. The corrective movement is expected to become deeper and more aggressive, with the first resistances for the bulls being the zones at around 1.1237 and at 1.1290. If prices stay below 1.1290, then a possible new wave of sell-offs could test the bottom at around 1.1107. Sentiment remains negative at the moment due to the dynamic situation in Ukraine. Bullish scenarios are possible, provided that prices stay permanently above 1.1350. Geopolitical events are shifting investors’ focus away from the economic calendar, but today they will nevertheless still follow the data on the business climate and consumer confidence for the euro area at 09:00 GMT.
USD/JPY
The U.S. dollar attracted asylum seekers and the pair moved closer to a resistance test at 115.72. The first support for the bulls is 115.09, and if the zone manages to limit the current correction, then a new impulse towards 115.72 is possible. In case of another failed test of 115.72, the market is likely to remain in the range between the support at 114.50 and the resistance at 115.72. If the bulls maintain their momentum and manage to overcome the double peak at 116.33, then a rally targeting the range of 117.50 – 118.00 is expected.
GBP/USD
The Cable also heavily tanked during yesterday’s session as the pair managed to bottom out at 1.3270. The daily close was above the weekly support of 1.3370, and in the early hours of today, the market has stayed true to this level. The correction, which is currently under development, could reach 1.3500, from which a new wave of sell-offs is expected. At the moment, expectations remain negative, but in case the recovery reaches 1.3600, then a change in the trend can be expected.
EUGERMANY40
EUGERMANY40 Current level – 14027 The German index managed to recover some of its losses and the weekly support at 13800 managed to stop the bearish pressure. The first resistance for the bulls is 14450 and the still unconfirmed support is 14100. The main area that would limit new sell-offs remains 13800. Despite the sour market sentiment, an aggressive correction, aimed at pressuring the bears, is still possible, with the main resistance shaping out to be 14800. Volatility is expected to remain high and a new test of 13800 is also possible.
US30
The U.S. blue chips made an impressive recovery and the index closed almost unchanged. If the zone is confirmed at 32655 or the rally continues, then 32360 can be considered to be the bottom of the market. Given that the bulls maintain their momentum, their next target would be the resistance at 33570. Geopolitical risks tend to fade over time and the market may offer more gains if the 32360 area remains intact. Many investors currently remain on the sidelines due to market uncertainties, but their return would provide the energy needed for more sustainable rallies.
