EUR/USD
The sell-off was limited to the support level at 1.0974 and the common European currency recovered part of its losses. However, the market sentiments remain negative and the bears would most probably try to regain control and attack the mentioned zone. A confirmed breach of that critical support would easily deepen the sell-off towards the psychological level at 1.0900. In the opposite direction, only a confirmed breach of the resistance at 1.1044 would allow the bulls to enter the market and lead the pair towards a test of the resistance at 1.1126. Today, an increase in market volatility can be expected around the announcement of the initial jobless claims for the United States at 12:30 GMT.
USD/JPY
The strong rally of the U.S. dollar, which started on 04.03.2022, seems to be slowing down and the pair has formed a support zone around the level at 121.32. The bulls start to lose momentum and a most likely scenario for today’s trading session is for the pair to enter a corrective phase before a potential continuation of the uptrend. On the other hand, this could be considered as an opportunity for the buyers to find a better entry level at the zone around 120.00. However, the market participants would most probably stay cautious and wait for the price to break the support at 120.44 before entering the market. In case the bulls prevail and manage to violate the resistance at 121.32, then we may expect the appreciation of the U.S. dollar to continue and the price to reach the levels at 122.15.
GBP/USD
After the pair bounced back from the resistance at 1.3290, the sterling lost ground against the U.S. dollar and, at the time of writing, the pair is hovering just above the support at 1.3185. The expectations are for this level to be tested and, if successfully breached, a short consolidation in the range 1.3100 – 1.3180 may take place. However, if the bears gain enough momentum to overcome the lower border of the range, this may deepen the sell-offs resulting in a sharp decline towards the critical psychological level at 1.3000. On the other hand, if the bulls take control over the markets and the support at 1.3185 resists the bearish pressure, we may expect GBP/USD to head towards a test of the important resistance at 1.3289, followed by the one at 1.3350.
EURGERMANY40
The bears entered the market over the past day and, at the time of writing, the sell-off is limited to just above the support area at 14135. Even though the price decreased, the index is still locked in the range 14135-14555. The most likely scenario is for a slight recovery towards the resistance zone at 14555. However, if the bears prevail and manage to overcome the critical support zone at 14135, a most probable result would be a decline in the price towards the support level at 13573. Investors are still cautious due to the high inflation rates and are expecting the development of the situation in Ukraine, which is still a major factor in determining the future direction of the market and the sentiments of the market participants.
US30
During the past trading session, the U.S. blue-chip stock index fell about 1.5% from the previous close. The bulls managed to limit the sell-off to around the support level at 34343 and, at the time of writing the analysis, we are seeing a consolidation taking hold immediately above the mentioned support. It is possible that we will also see a deepening of the sell-off, but before that, an adjustment towards the area at around 34600 is also expected. Only a confirmed breach of the support at 34343 would strengthen the negative expectations for a decline and the next target for the bears appears to be the support at 34100, followed by 33780. The statement of FOMC Member Waller (today; 13:10 GMT) is expected to be closely scrutinised by investors.
