EUR/USD
Neither the bears nor the bulls managed to gain enough momentum and the pair remained in the zone between 1.0467 and 1.0542. During the early hours of today`s trading session, volatility has subsided and the expectations are for a new attack on the upper border at 1.0542. A successful breach, followed by a violation of the next target at 1.0596, could easily continue the recovery for the European common currency against the dollar and could lead to a move towards the important resistance at 1.0643. If the bears prevail, then a follow-up attack and a breach of the support at 1.0467 could deepen the decline and would pave the way for a test of the major zone at 1.0399, where a violation would strengthen the negative expectations for the future path of the EUR/USD.
USD/JPY
After the violation of the support at 135.46, the dollar continued to lose ground against the yen and the pair tested the zone at 134.66. At the time of writing, the pair is trading above the mentioned level, but if the bearish attack continues, then a successful breach here could easily deepen the sell-off and head the Ninja for a test of the lower zone at 133.28. If the bulls re-enter the market, then their first target would be the level at 135.46, which is currently acting as resistance. A violation of the upper zone at 136.68 would mark the current move as corrective and could easily continue the rally for the USD/JPY.
GBP/USD
The Cable remains locked in the range between 1.2183 and 1.2321, and during the early hours of today, the pair is trading at 1.2260. A breach for the bulls at the upper border at 1.2321 could lead to a test of the next target at 1.2404 and a violation here would easily continue the recovery and increase the odds of a push towards the major resistance at 1.2466. If the bears prevail, then a successful attack on the support at 1.2183, followed by a breach of the lower zone at 1.2091, could deepen the sell-off and head the pair towards the lows at around 1.1968.
EUGERMANY40
The test of the support zone at 12986 was not successful and the German index consolidated above the mentioned level. If the bearish momentum fades, then the first target for the bulls can be found at 13224, followed by the resistance at 13439. Worse-than-expected data for Germany’s IFO Business Climate (today; 07:00 GMT) could help the bears prevail. However, a confirmed breach of 12986 could easily lead to new losses and could strengthen the negative expectations for the future path of the EUGERMANY40.
US30
After the breach of the resistance level at 30653, the US30 recovered some of its recent losses and the price headed for a test of the next target at 30920. If the bullish attack continues, then a violation of the mentioned zone would easily lead to a more sustained rally and a move towards the resistance at 31715. If the bears re-enter the market instead, then a breach of the major support at 30239 could easily deepen the decline and could lead to a new test of the low at 29734.
