EUR/USD
Yesterday, the euro ended with a slight decline against the dollar, and in the early hours of today, the pair scored some gains. After a failed attempt to breach 1.0396 at the end of last week, it is possible that the bulls could try to attack the zone at 1.0460 – 1.0490. It seems that the bulls are feeling hesitant, and for the moment, they are more likely to defend their positions than to be on the offence. The market most likely expects a catalyst, and until then, trading may continue in the range between the 1.0396 support and the 1.0535 resistance. Sentiment remains negative, and a change would occur only if prices breach and hold above 1.0600. If the annual support at 1.0360 is also breached, then more serious declines targeting 1.0200, or even parity with the dollar, can be expected. Today, a series of data on business activity in the services sector for the eurozone countries would possibly boost market activity.
GBP/USD
Despite the low activity yesterday, the pair ended in green territory and the trend carried over into the early hours of today. The bulls are once again about to attack the highs at around 136.70, with the first obstacle for them being the resistance at 136.30. A breach of the zone at 136.70 would unlock the possibility of a rally targeting 138.50. In an alternative scenario and another failure of the bulls at breaching this resistance, it is very likely that the market will continue to trade in a range with a lower boundary of 134.77 and an upper one of 136.70.
USD/JPY
The Cable could not hold onto its gains and yesterday’s session ended largely unchanged. The key area at 1.2170 was breached and is currently the first confirmed resistance. If prices fail to return above 1.2170, then another wave of sell-offs can be expected, with a breach of 1.1988 also not being excluded. First daily support is the level of 1.2100, but the zone is likely to prove unreliable. If the decline towards 1.1980 is interpreted as a test, then a more serious and prolonged bearish pressure can be expected. Sentiment remains negative and a change would occur only if prices remain above 1.2170.
EUGERMANY40
The German index started the week lower, but managed to stay above the 12740 support. In the early hours of today, the bulls attempted an attack on the 12940 resistance, but the target was not reached. Other attempts throughout the day are possible and a successful breach would bring prices back above the psychological border of 13000. The next resistance is 13170, and the key one is at 13370, which is unlikely to be reached at the moment. The trend remains bearish and the rallies are expected to be sold off. Since the middle of last month, the index has been trading in a descending channel, suggesting deep and sharp corrections, but the bears are still expected to maintain their dominance.
US30
Yesterday, due to the national holiday in the U.S., the markets lacked activity. Today, the blue chips are on the rise and prices are holding confidently above the 30930 support. Early this morning the bulls managed to break through the resistance at 31140 and may test the next zone at 31345. Negative market expectations have been building up in recent weeks and the prevailing consensus is for the declines to continue. Purely from a technical standpoint, there is some chance of a short squeeze occurring through a rally aimed at 32000, but such growth, even if materialised, would not be sustainable. For today, the main support for the bulls is 30930, and the first resistance is 31345.
