EUR/USD
The pair scored a second week of gains and the bulls managed to form a local support at around 1.0640. In the early hours of today, the euro is trading higher and it seems that the bulls are about to overcome the first resistance at around 1.0740. It is possible for the rally to continue and so buyers could test the key resistance at 1.0850. Despite the good performance in recent days, the trend remains negative as seen from the higher time frames. Expectations at the moment are rather negative, and a change in sentiment can be expected only in the event of a breach above 1.0850. The pair could dip for another test of the support at 1.0640. Today, higher activity can be expected around the announcement of the inflation data for Germany at 12:00 GMT. The week is expected to be dynamic, with the most anticipated event in the economic calendar being the data on newly created jobs for the United States, expected to come out on Friday at 12:30 GMT.
USD/JPY
The ninja slowed the decline and prices consolidated above the support at 126.50. This zone is also the main support at the moment, and in case of a breach, the declines can deepen towards 125.00. Declining volatility may be interpreted as an early signal for the end of the correction and so the bulls may continue to once more ride the main trend. A breach of the resistance at 127.30 would confirm the bullish attitudes and the first target of this movement could be the area at around 129.45.
GBP/USD
Last week, the Cable managed to overcome the key resistance at 1.2587 and prices are currently holding steady above this level. At the moment, 1.2480 can be considered as the main support, after the zone previously defended itself against the bearish pressure several times in a row. The expectations therefore remain positive, yet a correction from the current levels should still not be ruled out. A breach of 1.2660 could create an opportunity for a rally against the resistance coming from the higher time frames at 1.2980. The bulls can expect their first support for the day to be at 1.2587, while the main weekly ones are 1.2480 and 1.2370.
EUGERMANY40
The German index booked some good gains at the end of last week. In the early hours of today, there have been some slight gains as well and the bulls are about to test the resistance at around 14580. It is expected that the area will not be breached from the first attempt and that the bears could regroup and re-enter the market. It is possible for the prices to pull back towards the support between 14280 and – 14240 and the market could enter a range phase. Today, an increase in activity can be expected with the announcement of the consumer price index for Germany at 13:00 GMT.
US30
The U.S. blue chips recorded five consecutive days of gains and the bulls managed to overcome the key resistance at 32700. The forecasts are for a retracement movement and a subsequent breach. If it is successful, then investors can expect for prices to reach the 34100 level. Today, the major U.S. stock exchanges will be closed in honour of Memorial Day and so low market activity can be expected. The first support for the bulls is 32700 and the breach of the resistance at 33100 has not yet been confirmed. Keeping prices above this area would significantly improve investor sentiment.
