EUR/USD
The market is in a corrective phase and the bulls are about to test the resistance at around 1.1287. The movement looks aggressive and it is possible that this area could be breached and that the next resistance zones for the buyers could become the levels of 1.1320 and 1.1360. The first support for the bulls is the zone of 1.1235 and it is possible that it will be tested again. The expectations are for the formation of a small range between 1.1235 and 1.1287. The inability of the bears to plunge prices back towards 1.1170 could possibly spark a rally towards 1.1400 and 1.1480. The trend is still negative and so rallies may not be sustainable. A reversal of market sentiment can be expected if prices hold above 1.1480. Today, an increase in activity can be expected around the announcement of the change in ADP non-farm employment for the United States at 13:15 GMT.
USD/JPY
The expectations for a consolidation and the return of the bears above 115.01 were realised as the rally of the bulls was limited by the resistance at 115.63. The pair is currently hovering near the support zone at 114.63, and it is expected that it will be overtaken and that prices could head towards a test of the support at 114.00. A return of prices above 115.00 would break the pattern of continued downward movement. In such a scenario, a new test and a breach of 115.63 can be expected, as well as a possible attack on the high peak at around 116.16
GBP/USD
The bulls overcame the resistance at 1.3444 and managed to violate the zone at 1.3520. The downward trend is disturbed and it is possible that the direction of the movement will get reversed. A new test of 1.3444 is still not ruled out, and if the zone is confirmed, then a rally with a target of 1.3570 and even 1.3650 can be expected. In case of an unsuccessful breach of 1.3520, it is possible that the market will enter a range phase with a support level of 1.3370. The BoE is expected to announce its interest rate decision on Thursday, a raise of which is expected to favour the bulls.
EUGERMANY40
In recent days, optimism has returned to the markets and the bulls managed to overcome the key resistance at 15587. The covering of short positions gave the rally extra energy and the market is currently headed towards a test of the resistance at 15744. As the market is turning increasingly overbought, a new decline towards 15273 is possible. However, the expectations are for the dip to be bought again. The first daily support for the index is 15587, followed by 15400. If the rally continues and dashes towards 15744, then a movement towards 15900 can be expected.
US30
The dip was bought by investors and the breach above 34810 strengthened the positive market sentiment. The first support for the blue U.S. chips is found at 35000, but a test of 34810 is also not ruled out. The first resistance for the bulls is 35520 and a breach of this zone would open the way towards 35990. The last zone is unlikely to be breached from the first attempt, and given the stretched market, new and smaller pullbacks are not to be excluded.
