EUR/USD
The attempt for a violation of the resistance zone at 1.1320 was not successful and the euro erased a small part of its recent gains against the dollar. During the early hours of today`s trading, the pair is holding around the current level at 1.1300, and if the bulls re-enter the market, then a new successful attack on the mentioned resistance could easily continue the recovery towards the target at 1.1362. If the bears prevail, then a violation of the support at 1.1287, followed by a breach of the lower zone at 1.1235, could deepen the decline and put an end to the corrective move. Today, an increase in market volatility can be expected around the announcement of the European Central Bank interest rate decision (today; 12:45 GMT) and during Lagard’s press-conference shortly after that.
USD/JPY
The U.S. dollar extended its losses against the yen, but at the time of writing the analysis, the pair has calmed down around the current level at 114.42. The expectations are for the downward movement to continue, with a test of the support zone at 114.00 being the most probable scenario. A breach of the mentioned level could easily lead to new losses and would strengthen the negative expectations for the future path of the Ninja. The first target for the bulls can be found at the level of 114.63, followed by the resistance at 115.00.
GBP/USD
The test of the resistance zone at 1.3571 was not successful, and during the early hours of today`s trading, the pair is hovering under the mentioned level. If the bears prevail, then the corrective move should be limited to the support zone at 1.3444. If the bulls manage to gain enough momentum to overcome the zone at 1.3571, then the Cable will likely rally towards the resistance at 1.3651. The announcement of the Bank of England interest rate decision (today; 12:00 GMT) will most likely lead to an increase in volatility, especially given the fact that the main interest rate is expected to be increased by 25 bps.
EUGERMANY40
After the recovery was limited to the resistance zone at 15744, the German index fell below the close support zone at 15587. A confirmation of the breach could deepen the decline and pave the way for a test of the lower level at 15397. If the bulls regain their control, then a new successful attack on 15744 could easily lead to new gains and could strengthen the positive expectations for the future path of the index.
US30
The positive sentiment remained unchanged, and at the moment of writing, the U.S. index is hovering above the zone at 35524. If the bulls remain in control, then a rally towards the target at 35986 will be the most probable scenario. Worse-than-expected data for the U.S. initial jobless claims (13:30 GMT), as well as for the ISM non-manufacturing index (15:00 GMT) could help the bears prevail. If this proves to be the case, then a breach of the support at 34811 could lead to a short-lived range-bound trading in the interval between 33736 and 34811.
