EUR/USD
The single European currency continues to lose ground against the U.S. dollar, with the bears breaching the support at 1.0237 in the past trading session and reaching levels last recorded two decades ago. The mentioned support level now acts as the first important resistance. It is possible that the bulls will try to test the mentioned level, but this could be seen as a corrective move ushering the bears’ return to the market. The next important support for the bears is the level at 1.0100. Today, the ADP non-farm employment change data (12:30 GMT), as well as statements from two FED board members (17:00 GMT), will most likely have an impact on the volatility of the currency pair, but investors will be extremely focused on the announcement of the non-farm payrolls change for the U.S., as well as the unemployment rate change for the U.S., both of which are scheduled for tomorrow afternoon.
USD/JPY
The currency pair started forming a range in the narrow channel between 134.77 – 136.70, after neither the bulls, nor the bears managed to gain momentum for a third consecutive week. An entirely possible long-term scenario is for the dollar to continue to appreciate against the Japanese yen due to the expected continued tightening of the U.S. monetary policy. In a positive direction, the first significant resistance for investors is the level at 136.70, and in the negative direction, the level that would represent the main obstacle for the bears is the lower limit of the range.
GBP/USD
As with the other currency pairs, the British pound continued to lose ground against the U.S. dollar, consolidating around the 1.1930 support level at the time of writing. It is possible to witness a corrective move by the bulls culminating in an attack on the important resistance at 1.2000. However, the negative sentiment for the pound – for a deepening of the sell-off and an attack on the higher time frame support levels at 1.1700 – remains relevant.
EUGERMANY40
Since the beginning of the week, we have seen the German index recover after the bulls failed to breach the local minimum at 12426. The subsequent rally towards the resistance zone at 12622 managed to give the bulls the necessary impetus to breach the said resistance. It is possible to witness a momentary rally towards the 12941 area, but overall the sentiment is rather negative – for a deepening of the sell-off due to the looming threat of a global recession. In the realisation of such a negative scenario, according to the higher time frames, the next significant support zone in the way of the index, following the one at 12426, will be the zone at 11600.
US30
At the time of writing, the U.S. blue-chip stock index is consolidating just above the support level at 30931 and managed to regain some of its lost positions over the past few days. It is possible that this will give the bulls the necessary impetus to relocate the trading activity around the next significant resistance zone at 31700. However, looking at the higher time frames, investor sentiment remains rather negative – for a deepening of the sell-off, with the main factors responsible for this being the rising inflation in the U.S., the energy crisis in Europe, and the fear of a global recession. The economic news, mentioned in the EUR/USD analysis, could also have an impact on the volatility of the index in the coming days.
