EUR/USD
At the end of last week, the euro was sold off and the pair broke the support at 1.1400. The corrective phase has deepened and is currently limited by support 1.1330. The market is expected to remain undecided and a break of the main resistance at 1.1480 seems unlikely. The risk of conflict in Ukraine may plunge prices to the support at 1.1260, but it is possible the market will wait for the situation to develop. A return above 1.1400 would encourage the bulls for a new test at 1.1480. The first local resistance is the area around 1.1370. Today, an increase in activity can be expected around the speech of ECB’s Christine Lagarde at 16:15 GMT.
USD/JPY
As the crisis in Ukraine grows, so does the demand for heaven assets. The pair sold out on the last day of last week and the bears tested the support at 115.00. Double tops at 116.30 limit the potential for growth and a convincing breakthrough will be needed to continue the uptrend towards 118.60. The bears are hesitant in today’s early hours and the pair formed the first daily resistance at 115.57. A break of 115.00 would strengthen the bearish sentiment in the market and this could pave the way towards the support at 113.84.
GBP/USD
The cable is currently above 1.3520, but the Bulls seem to be losing patience after several failures to break the resistance at 1.3616. Sentiments at the beginning of the week are neutral as a break of 1.3520 would lead to sell-offs towards 1.3430. The main support from the higher time frames is 1.3370 and in the coming days the market may remain volatile, but without a clear direction. To continue the momentum to 1.3750, the bulls will first have to overtake the zone around 1.3616.
EUGERMANY40
The German index failed to hold last week’s gains and after the sell-off prices approached the support at 15075. It is possible for the bulls to test the resistance at 15300 and, if the zone is breached, the next target for them would be 15460. Seasonality supports bullish scenarios and reversal of the movement from the current levels has the potential to reach the resistance at 15722. Until this zone is cleared, the opportunities for gains remain severely limited. If the bearish pressure continues and the zone at 15075 is broken, a new test of the zone around 14800 is possible. This support has been holding the market since March last year, its role is key and a breach here could send the market crashing towards 14130.
US30
The US30 also sold out late last week, with the index breaking several supports on the way, the most significant of which is at 35065. In the early hours of today, prices are hovering around the support at 34785. They are likely to bounce back from that level and test the breach at 35065. If the zone is cleared, the recovery may continue to 35340. Several risks weigh on the market, such as inflation in the US, the Federal Reserve and the crisis in Ukraine, and currently gains are likely to be capped. A new wave of sell-offs could plunge prices to 34420, however the main support for the bulls remains at 33800. The uptrend on the highest time frames seems to be broken,and a breach of 33144 would confirm the reversal of the main direction of the market.
