EUR/USD
There is a slowdown in the downtrend as the bears failed to secure a lower bottom and the pair managed to stay above the support at 1.0900. The first resistance before the buyers is 1.0982, and after two unsuccessful attempts, it is about to be breached. In such a scenario, prices could rise towards 1.1038. Sentiment has not yet turned positive as for that to happen, prices would have to stay above the resistance at 1.1106. The bears can expect better attack levels around this area, and in case of new declines, a test and a breach of the support at 1.0846 is possible. In such a scenario, the euro could plunge towards levels of around 1.0640. Today, higher volatility can be expected around the publication of the ZEW data on economic expectations (10:00 GMT) and that of the U.S. PPI (12:30 GMT).
USD/JPY
In the last few sessions, the pair has seen strong growth, overcoming several resistances along the way. The rally has not yet entered a corrective phase and the expectations are for it to continue. The first support is the area around the weekly opening at 117.23. The first resistance is yesterday’s high at 118.43, with growth likely slowing due to market overcrowding. Looking at the highest time frames reveals that there is significant resistance around 118.60. The market is thus expected to enter a corrective phase when this level is reached.
USD/CHF
The Cable continues its downward trend, with any declines currently being limited by the support at 1.3000. Bearish attacks are becoming less frequent and it is possible that the market will enter a more complex correction or reverse the movement as a result. The first resistance for the bulls is the area at around 1.3050, and the next more serious obstacle is 1.3095. If this zone is breached and prices manage to stay above it, then a rally towards 1.3190 and even 1.3270 can be expected. A breach of 1.3190 would seriously increase the risk appetite of market participants, and depending on the fundamentals, the price movement may reverse its direction. If the bears still manage to breach 1.3000, then the declines could worsen towards 1.2860.
EUGERMANY40
The German index started the week with gains and prices tested the resistance at around 14060. At the moment, the market is trading steadily over the local support of 13800 and has formed a range above this area, with the bulls possibly preparing for a new attack on 14060. If the attack is successful, then a rally towards 14450 can be expected. In the event of new market turmoil, however, the bears may plunge prices back towards 13530 or the area above 13090.
US30
In recent days, the U.S. blue chips have traded in a range with 32900 as support and 33360 as resistance. The bulls are experiencing serious difficulties around this area and any rallies above it are being aggressively sold out. The index formed a double bottom at the 32360 support, but the desired response to this configuration is yet to be seen. It is possible that the market will remain without a clear direction in the coming days due to the upcoming FOMC meeting. Sentiment remains mixed, with the 32360 support and the 34100 resistance being critical areas for the market. A breach of one of these areas would signal the direction of another sustained move.
