EUR/USD
Neither the bears, nor the bulls managed to gain enough momentum and the EUR/USD remained locked in the zone between 1.0480 – 1.0570. The market sentiment remains negative – for a depreciation of the single European currency against the greenback, but only a confirmed breach of the critical support at 1.0480 could deepen the sell-off and head the pair towards a test of the next significant support at 1.0400. However, before a potential resumption of the downtrend is to occur, we may first witness an appreciation of the euro towards the resistance at 1.0630 – a level that may present the sellers with an opportunity to enter the market at better levels than the current ones. In case the resistance at 1.0630 is breached, then the corrective move may deepen and the pair could head towards the next key resistance at 1.0700.
USD/JPY
During yesterday’s trading session, the bulls made another attempt at breaching the critical resistance level at 131.20, but the bears took complete control over the market and convincingly led the pair towards a test of the support at 130.00. In the early hours of today’s trading session, the downward movement continued and the sellers are trying to overcome the psychological level at 130.00. In case this level is successfully breached, we may expect the sell-offs to deepen and the pair to head towards the support at 129.30. An increase in the value of the U.S. dollar against the yen above the level at 131.20 would most probably require more time, therefore the expectations are for a corrective movement towards the support at 129.30, followed by the level of 128.60.
GBP/USD
After the strong depreciation of the sterling against the dollar, the pair has found itself in a consolidation phase in the range of 1.2260 – 1.2390. A potential breach of the upper border, followed by a violation of the next target at 1.2470, could lead to a recovery and a move towards the major resistance at 1.2600. If the bears take control, then a breach of the support zone at 1.2260 could deepen the sell-off and could easily lead to new future losses for the sterling against the greenback and to a test of the next key support level at 1.2200.
EUGERMANY40
The German index began the day with a new sell-off and an approx. 1.2% decrease in its price. The panic sell-offs, caused by the uncertain situation between Russia and Ukraine, as well as by the increasing interest and inflation rates, seem to continue and the bulls still cannot manage to gain enough control and limit the downward movement. The expectations therefore are for the sell-offs to deepen and for the index to head towards a test of the psychological level at 13000. High volatility could be expected during today’s trading session, and if the bulls manage to take control over the market, then the price could make a corrective move towards the resistance at 13576 before the bearish pressure continues. Worse-than-expected data for the German ZEW economic sentiment (today; 09:00 GMT) could help the bears to take hold of the market. If this happens and they manage to violate the support at 13200, then we could expect a deepening of the sell-off towards the major support zone at 13000.
US30
In the beginning of today’s trading session, the decrease in the price of the index continued, but at the time of writing, the bulls have managed to limit the sell-offs to just above the psychological level at 32000. If the bears prevail and overcome this level, then we may expect a further decline towards the support at 31500. However, before a possible resumption of the downtrend is to take place, we could first witness a price correction towards the resistance zone at 32600. The market sentiment remains strongly negative and the most probable scenario at the moment is for the index to continue to lose its value as a result of the rising interest rates, Russia’s war on Ukraine, and China’s COVID-related lockdowns.
