EUR/USD
In the early hours of today, the euro was gaining strength against the dollar, and after testing the key levels at around 1.0500 and subsequently bouncing off it, the single European currency continued to grow in value against the greenback after the European session started. A few hours later, it even managed to reach its weekly peak of 1.0582 – a level that was also touched on last week. However, this level played the role of resistance and the bulls gave up on their next attack, as the euro fell to levels at around 1.0535 shortly before the end of the day. Today, there is no data in the macroeconomic calendar that would affect the rate of the euro against the U.S. dollar. Traders will focus their attention on Thursday’s data on German managers’ production and services assessment, scheduled at 7:30 GMT. If we see a high score, this may prompt the bulls to launch a new attack and possibly breach 1.0582, but for now, there is still a high probability that the dollar will continue its upward trend.
USD/JPY
At the moment, it seems like nothing could stop the USD/JPY’s uptrend. The currency pair started its rise in the early hours of today, and sometime around the opening of the European session, it convincingly breached its previous resistance of 135.46 and reached a new monthly peak of 136.68 just before the end of the day. There are currently no expected macroeconomic events that could help the yen to gain some ground and the current trend will most likely be preserved. Of course, market corrections that provide the bulls with convenient entry points are not to be excluded, similar to those of last week which downed the Ninja to 131.80.
GBP/USD
The sterling also managed to take advantage of the weakening dollar and continued its upward trend. After the opening of the London Stock Exchange, we saw a successful bull attack and the currency once again reached its key level of 1.2320 – a level that played the role of resistance throughout the previous week. Today, it played the same role as it stopped the bull attack and the session ended at around 1.2269 as the day drew to a close. Traders will be focusing on the UK’s May inflation data on an annual basis. The macroeconomic calendar will show the information at 6:00 GMTand the movements are expected to come after that. The ongoing trend in the pound will largely depend on the bulls’ and bears’ reaction to а possible further inflation rise.
EUGERMANY40
The EUGERMANY40 managed to rise by 240 points, and in the early hours of today and following a short test of the breached level of 13224, the index managed to bounce off it. Before the opening of the U.S. stock market, it also reached a weekly peak of 13439 – a level that, however, played the role of resistance in today’s session. At Wall Street’s opening bell, the correlation with the American indices was severed and the German index went into a decline, closing the day at 13258, or around the key level mentioned above. Whether this level will be able to support the price and breach 13439 will largely depend on the market’s reaction to the managers’ German production and services assessment that is due on Thursday at 7:30 GMT.
US30
The fall in the dollar managed to positively affect the U.S. stocks as well, allowing the U.S. indices to continue their rally that started on Monday. In the early hours of today, the key resistance at 30239 was breached and the index managed to reach a weekly peak of 30653 shortly before the closing bell on Tuesday. However, since this level played the role of resistance, the closure happened at 30546. Today’s statements by Fed chair Jerome Powell at 13:30 GMT may be just what the market needs to fuel a rally, but whether this will end up being just another correction or a new sell-off wave will depend on the reaction of the traders to his comments.
