EUR/USD
The bears managed to limit the recovery of the single European currency against the U.S. dollar to around the resistance level at 1.0850. The subsequent sell-off is possible to deepen further, with the first support zone being the level at 1.0811. The sentiment remains negative and a successful breach of the local minimum at 1.0757 could give the bears enough momentum to attack the next level at around 1.0640. Today, investors will focus on the announcement of the consumer price index data for the eurozone (09:00 GMT), as well as on the initial jobless claims data for the U.S. (12:30 GMT), with increased volatility expected around both events.
USD/JPY
After reaching the local high at 129.40, the currency pair entered a corrective phase as the bears managed to lead the price towards 127.50. At the time of writing, the appreciation of the dollar against the Japanese yen is gaining steam yet again, with the currency pair trading at around 128.50. Sentiments at the moment remain positive – for another attack on the main resistance at 129.40.
GBP/USD
After the bulls managed to limit the sell-off at the 1.2986 support zone, a price appreciation followed suit. At the beginning of the last trading session, the currency pair broke the resistance at 1.3045, after which throughout the day we observed a consolidation just above this level. Since the beginning of today’s trading session, however, the bears have regained control, with the most likely scenario being a breach of 1.3045, which is already playing the role of the first important support. A successful breach of the mentioned support could lead towards a deepening of the sell-off and another test of the main support at 1.2986.
EUGERMANY40
The recovery of the German index continued, marking two consecutive days of gains after the bulls managed to breach through the 14184 resistance zone, thus disrupting the range movement. This gave the necessary impetus to the current rally. During the last trading session, the bulls also managed to overcome the zone at 14322. For now, the most likely scenario is for a consolidation around the current levels, while investors will look forward to the announcement of the inflation data for the eurozone (today; 09:00 GMT), which could seriously shake up the forecasts for the recovery of the index, but could also predetermine its future movement.
US30
The U.S. blue-chip stock index continues to gain positions, finding itself just below the local high at 35346 at the time of writing – a level that is also playing the role of the main resistance for the bulls. A successful breach will solidify the positive sentiment and would take the trade towards the next significant level at 35850. On the other hand, a failed breach of 35346 could give the bears the necessary incentive to gain a foothold in the market and incite a new sell-off. The initial jobless claims data for the U.S. later today (12:30 GMT), together with the statement by FED chairman Jerome Powell (17:00 GMT), could determine the future of the index and so investors will follow the events with keen interest.
