EUR/USD
During the last session, the pair overcame the support at 1.1287, while after the Fed meeting it tested the key area at around 1.1235. In the early hours of today, the area is breached and a daily closing below this level would open the possibility for deeper declines towards 1.1000. The support at 1.1235 is the foundation of a range that lasted for about two months, which implies a large volume of positions and a correspondingly strong movement upon leaving the area. A potential support for the bulls may be the area at around 1.1180, but the expectations for an interest rate hike in the U.S. are in favour of the bears. The forecasts for new declines remain and the reaction of prices around the zone at 1.1235 will be key for the development of the next directional movement. Today, an increase in activity can be expected around the announcement of the GDP data for the United States at 13:30 GMT.
USD/JPY
The dollar rose in the past session and the pair managed to break the structure formed at around 114.00. The bulls seem to be trying to reverse the trend as the market is currently in a complex pullback. It is possible that the resistance at 114.68 will also be beached. The next zones at 115.00 and 115.63 are controlled by the bears and both levels have been tested and confirmed. With a breach of 114.68, prices could form a small range above 115.00, the exiting of which would decide the next impulse movement for the pair. If the bears prevail, then a breach of 113.48 is possible. Alternatively, if the bulls end up dominating the market, then new highs above 116.16 can be expected.
GBP/USD
The retracement of the Cable was limited by the resistance at 1.3520 and at the end of yesterday’s session, a wave of sell-offs took prices towards a test of the support at 1.1344. The expectations are that the zone will be breached following several attempted tests and that the declines may deepen towards the support at 1.3370. Any attack by the bulls should be limited to the level of 1.3520 or of 1.3570.
EUGERMANY40
The German index ended yesterday’s session in the green, but in the early hours of today, prices corrected almost all of the gains. Key support is the area at around 15000, and a daily close below it would provoke new declines towards 14800 and even 14400. If the bulls manage to keep prices above 15273, then they may be able to attack the next resistance at 15587 as well. The expectations are for volatility to remain high in the upcoming days.
US30
The U.S. blue chips also sank at the end of yesterday’s session. The Fed meeting failed to calm the markets and the expectations of feeble growth did not attract the bulls to buy the dip. The first support is the zone at 33420, followed by the weekly low at 33144. Hopes for a relief rally seem to be waning, as for this to happen, prices would first have to stay above 34000. The downtrend seems strong and its integrity would be breached if prices jump over 34800.
