EUR/USD
The consolidation of the EUR/USD continued in the early hours of today’s trading session and the pair is still locked in the zone between 1.0114 – 1.0272, as neither the bears, nor the bulls can gain enough momentum to lead the pair out of this range. Only a confirmed breach of either border of the channel may give investors an outlook on the future path of the pair. If the bulls manage to overcome the critical resistance at 1.0272, then an impulsive upward movement towards the next resistance at 1.0446, and even an attack on the next level at 1.0447, can be expected. However, if the bears manage to lead the pair out of this range by violating the support at 1.0114, then the psychological level at 1.0000 could be easily reached and the downtrend may resume, leading to a further depreciation of the single European currency – a highly possible scenario at the moment, considering the overall worsening of the economic situation in the European Union and the surging inflation. The formed consolidation phase seems to be solid and thus fake breaches of the range may occur, so investors need to be cautious when entering their positions.
USD/JPY
The successful breach of the key support level at 134.65 allowed the bears to test the critical support at 132.25. However, the bears would have to prevail first and thus only a successful breach of this level would pave the way for the USD/JPY towards the support at 130.50. The expectations for today’s trading session are for the pair to bounce back from this support zone and to form a local resistance at around 133.50. A correction towards the resistance at 134.65, before a potential resumption of the downtrend, is highly possible. Only, if the bears manage to violate the support at 132.25, however, may we witness a deepening of the sell-offs and a test of next support at 130.50.
GBP/USD
The resistance zone at 1.2200 appeared to be a considerable obstacle for the bulls and the pair is currently holding positions below this level. A consolidation in the 1.2200 – 1.2100 range is a highly possible scenario for today’s trading session. In case of a confirmed breach of the resistance at 1.2200, we may expect a possible bull attack on the next significant resistance at 1.2280. However, the expectations are for the mentioned zone to resist the bull pressure and for the bears to make another attempt to overcome the psychological level at 1.2100, where a successful breach would present sellers with a good opportunity to enter the market and target the key support at 1.2035.
EUGERMANY40
After successfully breaching the resistance zone at 13358, the bulls couldn’t gain enough momentum to reach the next key resistance at 13606. The forecasts for today’s trading session are for the index to remain in the range of 13358 – 13606, and we will most probably witness a slight correction towards the support at 13358. If the bulls prevail and the price increases above the level at 13606, then the most probable scenario would be for a further appreciation towards the next key resistance level at around 13858. A short corrective move towards the support at 13358 would be an opportunity for the buyers to enter the market at better price levels, as the current expectations are for a possible continuation of the uptrend. However, if the price falls below the key support at 13358, then the sellers would most likely target the key support at 13086, where a confirmed breach may give the bears enough incentive to easily lead the price towards the next support at 12835. The most reasonable course of action for investors at the moment is to remain neutral and to wait for a confirmed breach of either the resistance at 13606, or the support at 13358.
US30
The buyers managed to overcome the critical resistance at 32488 and the price is currently holding above this level. A continuation of the upward movement could be initiated by the buyers, but only а confirmed breach of the psychological level at 33000 would lead to a further increase in the price of the index towards 33533. However, the forecasts are for a reversal, and if the support at 32488 does not resist the sellers’ pressure, then the most likely scenario is for a deeper correction towards the zone at 32000.
