EUR/USD
After the single European currency reached parity with the U.S. dollar during yesterday’s trading session, we witnessed a slight recovery and a test of the first resistance zone at 1.0071. The bulls have not been able to impose themselves on the market and to breach the mentioned level, and at the time of writing, we are seeing a consolidation below the resistance zone. Sentiments for the moment remain rather negative – for a test of the psychological level at 1.0000. The more interesting economic news today, which could have an impact on the volatility of the currency pair, is the release of the U.S. consumer price index data (12:30 GMT).
USD/JPY
The resistance zone at 137.42 was not overcome in the past trading session, but as it stands, the most likely scenario is for another attack by the bulls. The bearish sentiments for the Japanese yen remain in place, with the possibility of a negative correction and a possible test of the first significant support area at 136.70, with the aim of finding better market entry levels. A possible deepening of the sell-off for the U.S. dollar could lead the trade towards a range move between 134.24 – 136.70.
GBP/USD
After the bears failed to breach the support zone at 1.1800 at the beginning of yesterday’s trading session, a slight recovery and a test of the zone at 1.1900 followed. The bulls failed to gather enough momentum to break through the mentioned resistance, but the most likely scenario is for another test of this level. A successful breach could take the trade towards the next significant resistance area at 1.2045. Today, the announcement of the UK’s GDP data will be in focus for investors, with a possible rise in volatility for the currency pair following suit.
EUGERMANY40
The situation from yesterday’s trading session has not changed much, with the German index facing a test of the resistance zone at 12875 after the bears failed to test the support zone at 12617. The momentum gathered by the bulls could help them to overcome the mentioned resistance. In such an optimistic scenario, we could expect further appreciation towards the next significant level at around 13000. Data on the inflation levels in Germany (today; 06:00 GMT) could have an impact on the volatility of the index.
US30
During yesterday’s trading session, the U.S. blue-chip stock index failed to breach the support at 30872, and at the time of writing, we are observing a consolidation at around 31000. We may see a recovery and a test of the significant resistance area at around 31400, but the overall sentiment coming from the higher time frames remains negative. The high volatility from the past session will also continue today, with the news mentioned in the EUR/USD analysis taking the main credit.
