EUR/USD
The pair continues tо consolidate since the second half of July. The main support remains the area between 1.0120 – 1.0150, and the main resistance is the wall at 1.0270. After such a long period of indecision, prices can be expected to break the range in either direction and it seems that the market currently needs a catalyst in order to find a clear direction. That could be the U.S. consumer price index scheduled for today at 12:30 GMT. A breach of the 1.0120 support would open the door to a new test of 1.0000. Provided that the U.S. inflation persists and the Fed continues to pursue its aggressive interest rate policy, an attack towards 0.9700 in the medium term is a possible scenario.
USD/JPY
The last few days have been uncharacteristically calm for the USD/JPY, with prices consolidating between the 134.40 support and the 135.35 resistance. Expectations remain aligned with the direction of the main trend – for a breach of 135.35 and an attack on the next zone at 137.40. Another drop towards 134.40 is not ruled out, as such a scenario would allow the bulls to re-enter the market. If this zone fails, then the next support levels for the bears are 133.45 and 132.50.
GBP/USD
The Cable ended the session largely unchanged and failed to hold onto the day’s gains. For now, the bulls are finding support above 1.2020 and 1.2060, but further declines towards the 1.2020 zone are also not excluded. On the higher time frames, the downtrend has lost its momentum, but it seems that risk appetite is also lacking among market participants. A more likely scenario remains a continuation of the downtrend, while a breach of 1.2020 would put 1.1920 on the map for the bears.
EUGERMANY40
The bulls failed to overtake the resistance at around 13730, and yesterday, the bears managed to breach the local zone at 13610. Early this morning prices are testing the support at 13500 and if it is breached, then declines towards 13340 are a likely scenario. August tends to be seasonally strong for capital markets and this limits the possibility of more serious declines for the time being. Another attempt to attack 13730 is not out of the woods yet, but in order for this to happen, the bulls would first have to clear out the 13610 level. It is likely for the market to continue trading without a clear direction, with a main support at 13340 and resistance at 13730.
US30
As expected, the U.S. blue-chip rally has lost steam at around 32910. Local support for the bulls is 32700, and the main one is 32470. The first resistance remains at the level of 32910. Despite the strong rally, the expectations currently remain negative. It is possible that the market will distance itself from the current levels and go in reverse, but a rally towards 33470, followed by a massive sell-off targeting the June and July lows, is also a possible scenario. Today, increased activity can be expected around the release of the U.S. CPI data at 12:30 GMT.
