EUR/USD
The EUR/USD’s collapse continues despite the pair being extremely oversold. However, the bulls managed to limit the sell-off to slightly above the critical support at 1.0500, which was last reached in 2017. The most probable scenario for today’s trading session is for the pair to enter a corrective phase and test the resistance at 1.0634. The strength of the dollar is colossal and the bulls would most probably face difficulties in overcoming the mentioned resistance. In the short term, we may expect the pair to consolidate in the range of 1.0500 – 1.0634, but only a successful breach of the support at 1.0500 could confirm the negative sentiments and could lead to a decline towards the level at 1.0400. During today’s trading session, the most important economic news that would be of interest to the market participants will be the GDP data and the initial jobless claims data reports for the U.S. at 12:30 GMT.
USD/JPY
During yesterday’s trading session, the U.S. dollar scored some moderate gains against the yen, which continued during the early hours of today. When the central bank of Japan announced that it would not change the current main interest rate of -0.1% and doubled down on its commitment to maintain its massive stimulus policy despite consumer inflation nearing 2%, there was a massive melt-down for the yen. At the time of writing, the Ninja is confirming the breach of the level at 130.00 and the most likely scenario for today is for a minor corrective move and a continuation of the rally. Due to the fact that there is a massive difference in the monetary policies in the U.S. and Japan, the rally will most likely continue towards 133.00 and beyond. In case the corrective move deepens, the first support is the level at 129.38, followed by 127.80, but even if these levels are reached, the uptrend will most likely remain intact. Some dollar volatility can be expected around the announcement of the initial jobless claims data for the U.S. at 12:30 GMT.
GBP/USD
The depreciation of the pound against the dollar was limited to the support zone at 1.2500, and at the time of writing the analysis, the Cable is holding positions above the aforementioned level. If the bearish momentum fades and the bulls prevail, then they could lead the pair towards the resistance level at 1.2600, but only a successful violation of the target at 1.2700 could lead to a change in the current sentiment of the market participants. If the sellers remain in control, however, then a new breach attempt of the zone at 1.2500 would be the most probable scenario. If confirmed, this breach could prolong the sell-off and could easily lead to future losses towards 1.2400 for the sterling.
EUGERMANY40
After the massive sell-off that began in the beginning of the week, the bears started to take their profits around the level of support at 13574 and the index partially recovered its losses. There is a high chance that this recovery is a short-lived correction and the bears would probably try to regain control and head the price towards another test of the support level at 13574. A breach of this level could be considered as a signal for the continuation of the downtrend and the next target for the bears would likely be the support at 13350. In the opposite direction, the first significant resistance lies at 13884. The expectations for today’s trading session are for the trading activity to remain in the range of 13884 – 13574. The situation in Ukraine will remain the main driving force behind the price action during today’s session as well.
US30
The downtrend for the U.S. blue-chip stock index continues, with the bulls currently managing to limit the sell-off to just above the support at 33164. We might see a short-term upward correction towards the resistance at 33870, after which the downtrend would most probably continue. A breach of the support zone at 33164 would significantly boost the sell-off towards the next support level at 32800.
