EUR/USD
Tuesday was a volatile day for the single European currency. The day started with an extension of the uptrend movements from the previous day, and around the opening of the European session, the pair managed to reach the resistance at 0.9985. There, however, the bears took over, and after the release of the positive data on the interest rate given by managers in the U.S. services sector, they strengthened the dollar even more and managed to reach a new bottom that had not been recorded for more than 20 years, namely 0.9863. There the bulls decided to further shape their attack and corrected part of the decline, ending the day at around 0.9902. Today, between 06:00 and 08:00 GMT, traders will await for a set of data on the state of the EU economy that may help the euro recover some of its losses. However, should the data end up disappointing the forex market players, then the euro’s uncontrollable slide could continue towards new lows.
USD/JPY
nce again we saw a new day and a new high for the Ninja. Already in the early hours of Tuesday, the previous resistance of 140.65 was breached, and without any oscillations, the USD/JPY managed to realise record prices of 143.05 as the European session came to a close. The dollar’s current strength against the Japanese currency is exceptional and no changes are expected to develop on this front anytime soon. The currency pair continues to alternate uptrends with consolidations which, however, do not last for more than a day. Today’s comments from the FOMC members on the upcoming package of key rate hikes could further strengthen the dollar, but if they end up disappointing traders, then we could see a consolidation instead.
GBP/USD
On Tuesday, movements in the Cable started the day promisingly as it was trading around the key level at 1.1600 close to the opening of the European session. However, after the 08:30 GMT release concerning the state of the construction sector in the UK failed to make any difference even after several hours of non-stop consolidations around the mentioned price, the bears took control over the pair and took it down towards 1.1497. A slight upward correction followed and the GBP/USD ended the day at around 1.1516. Traders are largely holding their breath today for the UK monetary policy report due out at 09:00 GMT. Whether the 1.1497 bottom will provide good support for the bulls and enable them to continue their attack, or if the bears will form a new bottom in the currency pair, remains to be seen after the report.
EUGERMANY40
The usual correlation with the U.S. indices was absent on Tuesday. After bouncing off the support at 12717, the German index managed to score a new weekly high in the early hours of the day, reaching 12929 around the opening of the European session. In the following hours, however, we saw strong volatility that did not allow the EUGERMANY40 to break out of its consolidation until the end of the trading session and the day ended at around 12813. Today, the German industrial production data, which is expected at 07:00 GMT, may have an impact on the index. Whether the downward trend will continue or whether some of the declines from last month will be recovered remains to be seen in the coming days.
US30
On Tuesday, the blue-chip index started with a slight uptrend that reached 31590 just a few hours after the European session opened. There, however, the bears found a good entry point and the US30 declined again, reaching the bottom at 31044. The declines calmed down at these levels and the day ended at around 31155. Today, statements from members of the FOMC on the future package of interest rate hikes are expected to have their effect on the index. The downtrend is strong and the lack of fuel for uptrend moves continues to push the instrument deeper and deeper into bear territory, but any dovish comments might push the American index towards recovery.
