EUR/USD
During yesterday’s session, the euro jumped after scorching CPI numbers for the United States, but the gains were quickly erased. The bearish pressure persisted until the end of the session and the pair closed around the daily lows, with prices testing the bottom from the beginning of March. In the early hours of today, a pullback move is developing, and it is expected to be limited by the resistance at 1.0850. If such a scenario is to develop, the breach could be considered as confirmed and the downtrend should continue. The mood remains bearish, as a breach in the area at around 1.0810 could plunge prices towards 1.0730 and 1.0640. A possible recovery towards 1.0900 would defer the bearish pressure, allowing trading to continue in the 1.0850 – 1.0940 range.
USD/JPY
The pair ended the day almost unchanged and the uptrend is still spared from deep retracements. The expectations are for the trading action to slow around the resistance of 125.75 – the peak zone from 2015. If this zone is overcome, then prices are likely to set a record not seen in nearly 20 years. This type of movement belongs to the highest timeframes and it is possible that the bears will continue to be stuck. The first daily support for buyers is 124.74, followed by the already confirmed zone at 124.00.
GBP/USD
The sterling slowed the declines and is currently range trading within the support at 1.2988 and the resistance at 1.3050. The bulls’ attempts to overcome the resistance were quickly suppressed and the pair ended the day in the red. The bears are therefore expected to overcome the support at 1.2988 and the decline is to continue towards 1.2845. First resistances for the bulls are 1.3050 and 1.3165, but a recovery towards the resistance at 1.3100 so far seems unlikely.
EUGERMANY40
The German index slowed its decline, but the session still ended with losses. On the analysed timeframe the trend is rather negative, but when analysing the higher ones, the market is trading in a range and prices are currently found under its support. If the prices stay above 14050, then yesterday’s decline could be interpreted as an attempt by the bulls to generate liquidity and prepare for a bearish squeeze. April is seasonaly good for the capital markets and so it is possible for the bulls to muster another attack on 14835. Their first resistances are 14360 and 14560, while the supports are found at around 14050 and 13880.
US30
The situation with the U.S. blue chips is similar to that of the EUGERMANY40. The index made several false breaches of the 34300 support and the chart is about to form a double bottom with bullish divergence. With the onset of April, which is seasonally strong for the market, as well as the first quarter earnings season, rallies with targets of 35310 and 35500 can be expected, with the sentiment already seeming negative enough to realise such scenarios. Today, increased activity can be expected around the announcement of the U.S. producer price index at 12:30 GMT.
