EUR/USD
The euro ended the day deep in the green and managed to maintain momentum after the Fed’s meeting earlier this week. The support at around 1.0400 once again managed to limit the declines, and the subsequent rally reached the resistance at around 1.0580. This is the first resistance for the day, and if the mood remains unchanged, then a breach and a test of the next zone at 1.0640 can be expected. Looking from the higher time frames, double-bottom formation can be expected at 1.0400, but in order to complete the configuration, we would first have to see a breach of the range above 1.0760. The general trend is still negative, and despite the bullish sentiment, the reversal has not yet been confirmed. The rally may be caused by speculative bets on the forthcoming interest rate increase by the ECB. If this scenario rings true, then the rally’s long-term targets could become 1.0760 and 1.1500. The main support zones remain 1.0460, 1.4000 and the annual support at 1.0350. Today, an increase in activity can be expected around the announcement of the CPI data for the euro area at 09:00 GMT and the statement of Fed chairman Jerome Powell at 12:45 GMT.
USD/JPY
Following the decision of the Central Bank of Japan to keep its monetary policy and interest rates unchanged, the yen marked a new decline against the dollar. Prices are again moving in the range between the support at 133.28 and the resistance at 134.66. Market panic is expected to continue and the stress of bond markets is to be transferred to the yen. The resistance at 135.46 comes from a 20-year high and so a possible breakout may take a while. If it gets violated in spite of that, then the next zone is the distant level of 146.00. First supports for the bulls are 133.28 and yesterday’s bottom at 131.81.
GBP/USD
The sterling also booked some nice gains in the past session. The initial declines after the BoE raised its interest rates were quickly erased and the pair continued its rally until the end of the session. The bulls reached the resistance at 1.2380, and in the early hours of today, the market entered a pullback phase. The first support buyers can expect at about 1.2200. The downward trend is not over yet, and while prices remain below 1.2466, any bullish impulses may prove to be unsustainable. To change the market mood, the Cable would need to score new gains, otherwise a new drop towards 1.2000 or range-bound trading is the more likely scenario. When analysing the higher time frames it becomes clear that, although the bulls still have a chance to spark a more substantial rally, they would first need to defend the annual support at 1.1933.
EUGERMANY40
The strong sell-off waves tanked most of the global exchanges and the German index was not spared either. The blue chips lost more than 500 points, and the mood was further soured by the rise of the SNB interest rates and the news of asset sell-offs. In the early hours of today, prices rose after the BoJ announced that the country’s monetary policy remains unchanged. The first resistance is found at around 13224, and the other significant one is the distant level of 13650. If this negative trend continues, then there is a risk of the index reaching its low of 12470 from March this year. Expectations remain negative, and any pullbacks would likely be limited by the current resistance zones and therefore be short-lived.
US30
The U.S. equities also fell sharply, and the US30 ended the session below the psychological level of 30000. The declines are expected to continue and the markets are already pricing in the risks of a recession. Possible supports buyers can expect at about 29800 and 29360, with the first resistances currently being 30240 and 30920. Today, increased activity can be expected around the statement of Fed chairman Jerome Powell at 12:45 GMT.
