EUR/USD
The pair continues to trade between the support at 1.0482 and the resistance at 1.0580. The range has been going on for two weeks now, with neither side taking the initiative. The market needs a catalyst in order to find a clear direction, and so far the rise in the U.S. interest rates and inflation data have failed to provide this initial jolt. There is accumulated liquidity around both the support and the resistance levels and it is likely that the first breach of the range will be fake and the market will move in the opposite direction. The market is likely to remain in “standby” mode, and more activity can be expected in case of a confirmed breach in one of the support and resistance areas. Today, increased volatility can be expected around the announcement of the PPI data for the United States at 13:30 GMT.
USD/JPY
The dollar retreated from the highs against the yen. The market is currently entering a range phase, with the main support being 128.82. First resistance zones for the bulls are 130.45 and 131.22. It is expected that the uptrend will continue again as a breach of 131.22 would pave the road towards 133.00. Before that, however, it is possible for the bulls to retreat and look for better opportunities to enter under the support of 128.82.
GBP/USD
The Cable breached the support at 1.2275 at the end of the trading session. In the early hours of today, there isn’t much activity, but with the opening of the European markets, a test of the breach at 1.2275 is possible. If it turns out to be fake and prices stay above the support, then attacks on the resistance zones at 1.2403 and 1.2470 can be expected. On the higher time frames, the declines seem quite stretched and a deeper pullback from the current levels is possible. If, however, the bearish pressure continues, then the declines could deepen towards 1.2060. This area has been a crucial support level for the market since 2016, and so if it is cleared, then the sterling could have a very bumpy road ahead of it.
EUGERMANY40
Yesterday, the German index managed to solidify the support at around 13540 and the bulls tested the resistance at 13885. Most of the gains for the day were erased due to downturns in the U.S. stock markets, but the session ended in the green. The trade is expected to continue in the wide range between the support at 13540 and the resistance at 14160. The first resistance of the day is the area at around 13690.
US30
The U.S. blue chips are about to realise a fifth consecutive week of losses. Such a phenomenon is rare and so the sentiment is already extremely negative. However, a relief rally towards the resistance at around 33,000 can be expected soon. The support at 31890 was briefly disrupted and the coming days will show whether yesterday’s downturns signalled the capitulation of the bulls. The first resistance for the bulls is 32580, while difficulties can be also encountered at around 32200. Given that the collapse continues, a breach of 31890 and a decline towards 31670 can be expected.
