EUR/USD
The single European currency continued its weekly trend and fell sharply against the U.S. dollar on the last trading day last week. The reason for the strong bearish attack was the decision to keep the key interest rate in Europe at 0.00%, which was taken as a response to the 7.5% inflation growth in the region as per the ECB’s data. On the day of the announcement, the session started positively, once more reaching levels at around 1.0925, but soon after the euro hit a low of 1.0757. The rocky session ended with a slight increase back towards 1.0834. This week will begin slowly – with an official holiday (Easter) in a number of European countries – and without much macroeconomic data. If the pressure continues, then a decline towards levels below 1.0757 is more likely, as is a deepening towards the bottom at around 1.0640. However, if the bulls find support in the coming days, then we could witness another test of the resistance at around 1.0925.
USD/JPY
The yen session started with a slight correction towards 125.03, but soon after we saw another acceleration of the uptrend thanks to the strengthened U.S. dollar. The movements conquered the peak at 126.00, where the price stayed right up to the closing bell. Тhe market sentiment for reaching higher prices remains unchanged and so the Ninja may reach levels of 129.00 this week. That being said, corrections should not be ruled out and the supports at around 125.03 should be monitored. The Fed leader’s remarks on Thursday will be important for traders as they could affect the dollar’s movements..
GBP/USD
The trading session in the sterling also started positively, climbing towards 1.3143 – a move still driven by the positive CPI data for the UK that came out on Wednesday. However, the downward trend did not wait and the immense strength of the dollar yanked the pound towards the bottom of 1.3032. The day ended with a slight recovery and the market closed at around 1.3080. The beginning of the week is shaping up to be calm, with no significant market data available due to the Easter holidays, so the first more notable movements are likely to be spurred by the statements of BoE gov. Andrew Bailey, scheduled for Thursday and Friday. Downward movements are more likely and we could see a return towards 1.2986 and a possible deepening towards 1.2850. However, if instead the dollar weakens and the bulls gain momentum, then the Cable may bounce back up at least towards the level of 1.3165.
EUGERMANY40
On the last day of the week, the German index paused its decline and managed to score slight gains, supported by the movements in the euro on the same day. The bulls had the opportunity to attack, and with the news that the interest rates in Europe will remain at zero, the index managed to rise towards 14200. The EUGERMANY40, however, failed to hold onto its gains, and at the end of the session closed at around 14050. The downward trend is a more likely scenario and so we can expect for the index to reach levels at around 13884 and to further deepen towards 13580, but if last week’s daily rise continues, then we could again see it reaching the resistance at around 14560. This week,f traders will focus on managers’ data on the German Manufacturing PMI on Friday.
US30
The blue-chip index started the day with a slow rise, which quickly accelerated around the opening of New York stock exchange and reached a peak at 34882. However, the downward trend did not stall, and following the breach of 34705, the index reached the bottom at around 34445, at which point the session ended. Jerome Powell’s speeches will be closely monitored this week as they can provide clues about the speed at which the U.S. interest rates will be increased. A decline towards the support at about 34100 is a likely scenario and it could even deepen further towards 33800. However, if the index once more returns to its previous range-bound trading, then we could see a rebound back towards 34700.
