EUR/USD
The single European currency has lost nearly a figure and a half of its value against the U.S. dollar since the beginning of the trading session. For the time being, the sell-off remains limited above the support zone at 1.1107. It is possible to witness additional sell-offs, but for this to happen, the bears would first need to prevail and successfully breach the aforementioned support at 1.1107. By the looks of it, another volatile week is ahead of us mostly due to the deteriorating conflict between Russia and Ukraine. Investors will also look at the ADP non-farm employment change data for the U.S. (Wednesday; 13:15 GMT), as well as the unemployment change data for the U.S. (Friday; 13:30 GMT), with the spotlight falling on the non-farm payrolls change data for the U.S. (again on Friday at 13:30 GMT).
USD/JPY
Last week, we witnessed two consecutive unsuccessful attempts at breaching the resistance at 115.72. The U.S. dollar continues to gain positions against the Japanese yen, which is likely to lead to a third test of the mentioned resistance zone. A successful breach here could lead to a rise and a possible test of the next significant level at 116.15. On the other hand, if the bulls fail to gain enough momentum, then it is very likely for the bears to enter the market and lead the trading action towards the first significant support area at 115.10.
GBP/USD
The U.S. dollar strengthened its position against the British pound, and at the time of writing, the trade is located immediately after the breach of the support area at 1.3366 – a level that would play the role of resistance if the breach is confirmed. In this case, the most likely scenario would be for an additional reduction towards the next significant support at 1.3270.
EUGERMANY40
The German index opened with a negative gap in the first trading session of this week, losing more than 4% of its value due to the escalating conflict between Russia and Ukraine, which has led to uncertainty and fear among investors around the world and resulted in a flurry of economic sanctions against Russia. Another week of high volatility awaits the index, which may face a test of the key support at 13800. A possible breach of the mentioned support would seriously worsen the current sentiment and could lead to a deepening of the sell-off towards the next significant zone at around 13000. Investors will closely monitor the development of the forthcoming negotiations between Russia and Ukraine, the outcome of which is expected to play a major role in shaping the future of the index.
US30
After recovering from Friday’s session, the U.S. blue-chip stock index opened with a negative gap today, losing more than 1.7% of its value at the time of writing. The losses were largely driven by the growing concerns about the economic consequences spurred from the Russia – Ukraine conflict. A confirmed breach of the 33572 area would open an opportunity for the bears to instigate an additional sell-off and to attack the next support zone at around 32350. Negotiations between the warring parties remain at the forefront, the outcome of which would be the main factor determining the future of the index. Any planned economic news this week that could affect the volatility of the U.S. index has already been mentioned in the EUR/USD analysis.
