EUR/USD
The euro managed to recover half of its Monday losses against the U.S. dollar. The main news is that Russia and Ukraine have agreed to negotiate on the border with Belarus. However, the recovery is too weak and the movement of the currency pair was limited below the resistance level of 1.1237. This shows that the downward movement is not over and the pair is therefore projected to move towards a new test of the support at 1.1107. Volatility will remain high during the week due to the ongoing war, as well as due to the important economic data for the United States, which will be released at the end of the week and which we have already mentioned in yesterday’s analysis.
USD/JPY
Over the past session, the dollar lost ground against the yen and turned towards the support at 114.84. A possible breach of the next level at 114.50 would give the bears a more serious advantage, but this support is more likely to hold and the currency pair is to return to the upper border of the formed range between 114.50 and the resistance at 115.70.
GBP/USD
The Cable recovered everything it lost against the dollar in the past session and turned towards the resistance at 1.3500. In case the currency pair breaches this level and manages to stay above it, then this would clear the way for the bulls towards the next resistance at 1.3600. If this scenario does not happen, then the negative trend, indicated by the longer time frames, will continue and the bears are likely to prevail once more, storming the support at 1.3366.
EUGERMANY40
The optimism that had stemmed from the news about the negotiations between Russia and Ukraine was temporary for the German index and it lost half of what it gained during the day. The great uncertainty caused by the war, and its negative effects on the European economy, have greatly impacted its volatility. A possible breach above the level of 14450 could pave the way for the bulls towards the next resistance level at 14840, but if the situation does not improve, then the bears might once again prevail and push the index towards the support at 13800.
US20
The U.S. index recovered most of its losses it had suffered at the opening bell on Monday, but only a breach and a consolidation above the level at 34040 could be considered a signal for a possible rise towards the next resistance at 34523. The trends remain negative and a breach of the zone at 33572 would likely allow the bears to advance towards the next support zone at around 32350. Negotiations between the warring parties and the upcoming important economic data for the United States remain the leading factors that will determine the future direction of the index.
