EUR/USD
The support zone at 1.1330 was violated and the European common currency continued to lose ground against the dollar during yesterday’s session. If the bearish attack continues, then the expectations are for a test of the target at 1.1268. A successful breach of the aforementioned level would strengthen the negative expectations for the future path of the pair and could easily lead to new losses for the EUR/USD. The first target for the bulls is the level of 1.1330, which is now acting as resistance, followed by the zone at 1.1369. The economic calendar is quite packed today and volatility can be expected at 10:00 GMT, when the GDP data for the Eurozone and the ZEW economic sentiment for Germany are to be announced, as well as the Core PPI for the U.S. at 13:30 GMT. The lack of de-escalation in Ukraine will also keep markets on their toes and might lead to some sharp moves.
USD/JPY
Yesterday, neither the bears nor the bulls managed to gain enough momentum and the Ninja continued to trade in the zone between 115.03 and 115.57. Only a successful breach of one of the borders could set the future direction of the USD/JPY. A violation of the resistance level at 115.57 would pave the way towards a test of the upper target at 116.15, where a breach could lead to a more sustained rally and further gains for the dollar against the yen. A breach of the level at 115.03 will most likely lead to a deeper sell-off towards the support zone at 114.31.
GBP/USD
The breach of the support zone at 1.3521 was not confirmed, and during the early hours of today`s trading, the Cable is holding positions above this level. If the bulls manage to keep the pair from falling below 1.3521, then an attack on the resistance zone at 1.3616 would be the most probable scenario. A successful breach of the aforementioned level would strengthen the positive sentiment and most likely lead to more gains for the sterling against the greenback. If the bears gain momentum and manage to violate the support at 1.3521, then their first target would be the level at 1.3434.
EUGERMANY40
The sell-off was limited by the support at 14839 and the EUGERMANY40 regained some of its losses. At the time of writing, the index is hovering above the level at 15075, and if the bulls breach the resistance at 15297, then the recovery will most likely continue towards the target at 15459. Worse-than-expected data for the German ZEW economic sentiment and the Eurozone GDP data (today; 10:00 GMT) could help the bears to take hold of the market, violate the zone at 15075 and deepen the sell-off towards the major support zone at 14839.
US30
The support zone at 34419 withheld the bearish attack, and during the early hours of today`s trading, the U.S. index steadied just above the mentioned level. If the sellers continue to pressure the US30 and breach the support at 34419, then the sell-off would most likely accelerate towards the support at 33797. The first resistance for the bulls can be found at the level of 34785, followed by 35065. During today’s session, investors will be closely watching the data for the U.S. PPI (13:30 GMT) as high readings here could signal an even more aggressive tightening of the Fed’s relaxed monetary policy. The situation in Ukraine will also continue to be on markets’ agenda, keeping volatility high.
