EUR/USD
The single European currency continues to lose ground against the U.S. dollar as the breach of the 1.0704 support zone from the previous session gave additional impetus to the bears. They, in turn, without hesitation led the market towards the area of the next significant support at 1.0635 – a level last reached in March 2020. The return of the bulls will be relatively difficult with such a predominantly bearish sentiment. The first important resistance for the buyers is the 1.0757 zone, with the most likely scenario at the moment being for a consolidation around the current level. The initial jobless claims data for the United States (Thursday; 12:30 GMT), as well as the data on the consumer price index for the euro area (Friday; 09:00 GMT) could play a key role in determining the future movement of the currency pair.
USD/JPY
The range from the previous week was disrupted earlier this week. The bears managed to lead the market towards the support zone at 126.96, where the bulls intervened and managed to limit the sell-off. At the time of writing, the currency pair is facing a test of the resistance zone at 127.60 – an area playing the role of the lower boundary of the range between 127.60 – 128.75. A resumption of the range is not excluded if the bulls manage to overcome the mentioned zone of resistance. Investors will look forward to the bank of Japan’s interest rate decision on Thursday morning.
GBP/USD
The bears continue to keep control in their hands, easily overcoming the support zone at 1.2709 during yesterday’s trading session. The deepening of the sell-off continues at the beginning of today’s trading session, and for now the bulls manage to thwart the attack in the significant support area at 1.2551. The most likely scenario is for maintaining the negative sentiment for a depreciation of the British pound against the U.S. dollar. The first significant resistance zone for the bulls is the not-so-close level of 1.2700.
EUGERMANY40
The sell-off continued at the beginning of today’s trading session, and at the time of writing the analysis, we might see a correction above the 13574 support level. If the bulls manage to recover and take control, then it is possible to witness an attack on the first significant resistance at 13884. With the realisation of such an optimistic scenario and the breach of the mentioned resistance, it is possible to witness the end of the sell-off and the resumption of the upward movement.
US30
Both the European markets and the U.S. blue-chip stock index closed in the red. The bulls managed to limit the sell-off at the 33164 support level, and at the time of writing the analysis, the US30 is just ahead of a test of the resistance zone at 33417. A successful breach here would give the investors the necessary incentive to attack the next significant levels at 33870 and at 34100. Such an optimistic turn of events is not ruled out mainly due to the fact that many American companies are in the process of publishing their quarterly reports and that the results so far exceed expectations, despite the deteriorating global economic situation and the rising inflation.
