EUR/USD
Since the beginning of the trading session, the bears continue to gain positions, and at the time of writing the analysis, the currency pair is facing a test of the support zone at 1.0482. Sentiments remain negative, and if the bears prevail over the bulls and manage to overcome the mentioned support, then it is quite possible that the sell-off will deepen towards the level of the next important support at 1.0350. This week, the most significant economic news that would be of interest to the market participants, is the PPI data for the U.S. (Tuesday; 12:30 GMT), the retail sales data for the U.S. (Wednesday; 12:30 GMT), as well as the Fed’s interest rate decision (Wednesday; 18:00 GMT). The announcement of the change in the consumer price index for the eurozone (Friday; 09:00 GMT) could also affect investors’ sentiment.
USD/JPY
The U.S. dollar continues to gain ground against the Japanese yen, as at the beginning of today’s trading we witnessed a successful breach of the resistance at 134.50. This, in turn, further strengthened the bulls’ positions, which could lead them to test the next significant resistance at around 137.30 that is coming from the higher time frames. The level at 134.50 already plays a key role as a first support area. If, however, the bears manage to limit the rise, then it is quite possible to witness the resumption of the range movement between 133.16 – 134.50. In addition to the news mentioned in the EUR/USD analysis, at the end of the week (Friday; 03:00 GMT) investors will closely follow the announcement of the interest rate decision of the Central Bank of Japan.
GBP/USD
The pound, like the other major currencies, continues to lose ground against the U.S. dollar. From the beginning of the trading session, we witnessed a push towards the support level at 1.2261. However, the test of the area has not yet been completed and the price at the time of writing has consolidated to just above the mentioned level. A successful breach could lead the price towards the local minimum at 1.2171. The announcement of the interest rate decision by the Bank of England (Thursday; 11:00 GMT) will be closely followed by the market participants, and so an increased volatility during the event is not ruled out.
EUGERMANY40
The sell-off for the German index has been going on since last week, and at the beginning of today’s trading session, the successful breach of the support area at 13680 encouraged the bears and helped them push the price towards the next significant support at 13475. A deepening of the sell-off is not excluded as a consequence of the persistent negative expectations of investors. After the sudden sell-offs, it is possible that we will see a consolidation at around the current levels, or even a correction and an appreciation towards the first resistance at 13680, in order for the bears to find better entry levels.
US30
The U.S. blue-chip stock index continues to fall, losing nearly 1% of its value since the beginning of today’s trading session alone. The breach of the 31357 support area gave the bears additional confidence, and so the US30 traded at around the area of the next significant support at 31000. Here, the bulls intervened successfully and limited the sell-off. It is possible that we will see a correction in a positive direction and even a test of the zone at 31357, which already plays the role of resistance, but sentiments at the moment remain rather negative. There are a number of expected economic events this week (already mentioned in the EUR/USD analysis) that could have a major impact on the market participants.
