EUR/USD
After the strong depreciation of the euro against the U.S. dollar from 1.0910 to 1.0520, the currency pair entered a consolidation phase in the narrow range of 1.0480 – 1.0565. During yesterday’s trading session, the bulls unsuccessfully attacked the resistance at 1.0565, which led to additional losses for the EUR towards the level at around 1.0510. The market is still failing to find a clear direction and the expectations for today’s trading session are for the bears to attack the critical support at 1.0480, where a breach would most probably lead to a resumption of the long-term downtrend. In case this scenario is realised and the pair holds its position below 1.0480, then the next target for the sellers should be the support at 1.0450, followed by the psychological level at 1.0400. In the opposite direction, only a successful breach of the resistance at 1.0565 may lead to a corrective movement towards the next resistance at 1.0653. The most important news for investors today is the expected Fed Interest Rate decision (today; 18:00 GMT) and the follow-up press conference at 18:30 GMT, as well as the data regarding the change in ADP non-farm employment for the United States at 12:15 GMT.
USD/JPY
Low volatility is observed since the beginning of the week and the pair is trading in the narrow range of 129.70 – 130.30. A breach of the local resistance at 130.30 may lead the pair towards a test of the next important resistance at 131.23. A successful breach of the mentioned resistance may resume the uptrend and inch the price towards the level of 133.00, which was last reached in 2022. On the other hand, if the bears prevail, then a correction and a deepening of the sell-off towards the support at 127.66 is not excluded. However, such a decline could be expected only if the support at 129.29 is breached.
GBP/USD
The situation with the GBP/USD is similar to that of the EUR/USD, and at the time of writing, the pair is situated just above the key support at 1.2473. In case the bears take control and overcome this level, then an impulsive downward movement and a test of the next support at 1.2400 could be expected. However, if the mentioned support resists the sellers’ pressure, then we could expect an upward movement towards 1.2600.
EUGERMANY40
During the previous trading session, the German index managed to remain above the support at 13958, but the buyers could not gain enough momentum to reach the resistance at 14121. The current market sentiment is rather neutral and the expectations for today’s trading session are for the price of the index to fluctuate in the channel of 13958 – 14121. However, in case the bulls manage to take control over the market and violate the support at 14121, then an appreciation towards 14295 may be expected. In the downward direction, only a successful breach of the support at 13958 could possibly head the price towards the next support at 13850.
US30
At the time of writing this analysis, the index is headed towards a test of the support at 33164 and an eventual breach of this level would head the price towards a test of the next support at 33411. However, the market sentiments remain negative and the forecasts are for this support to resist the buyers’ pressure and for the sell-offs to resume, heading the index towards a new test of the critical support at 32724. Today, an increase in market volatility can be expected around the announcement of the Fed Interest Rate Decision (18:00 GMT), as well as during the follow-up FOMC press conference (18:30 GMT).
