EUR/USD
In less than a quarter, the U.S. dollar managed to reach parity with the euro for the second time. Unlike the previous time, where one euro traded for one dollar, the pair managed to confirm the breakthrough. This sell-off means that the bets for a more hawkish FED after the Jackson Hole symposium are on the rise. If the bears continue to dominate the market, then the pair will most likely target the support at 0.975 coming from the higher time frames. . The bulls, on the other hand, will have the difficult task to overcoming the resistance at 1.000 and then the next one at 1.011, if they are to have any chance of reversing the sell-off.
USD/JPY
In the past trading session for the Ninja, the bulls made two attempts to breach the resistance at 137.28. The second breakout was solidified and investors took their first steps towards the next resistance at 138.60. If, however, the bears manage to reject the breakout, then they would try to reach the key support at 135.38. No important macroeconomic news is expected from Japan today.
GBP/USD
In the past week, Great Britain announced its highest inflation rate since 1982. This news encouraged the bears as they headed for the support at 1.1760. If, however, the bulls manage to turn the market around in their favour, then they will have to first breach the closest resistance at 1.1804, and only then consider the more distant one at 1.1935.
EUGERMANY40
It took only yesterday’s trading session for the bulls to overcome the two key supports at 13507 and at 13340. Today’s session started with a slight success for the bulls and they managed to recover some of their lost positions, but not enough to breach the nearby resistance. Volatility is expected to remain elevated throughout the day, with the leading factor being the limited supply of Russian natural gas and the odds of a total shutdown of the pipeline rapidly rising as winter approaches. If this scenario materialises, then a recession scenario for Europe will be virtually inevitable.
US30
Looking at the U.S. blue-chip index, yesterday’s trading session was marked by strong bearish success. The rising dollar aided the sell-off and the index fell below the support of 33300. Today’s trading session started calmly – with a slight advantage for the bulls who are trying to recover their big losses from the past days. This calm state of the market is unlikely to continue throughout the session, but if it does, it could be disturbed at 14:00 GMT, when the U.S. new home sales numbers will be released. If the news negatively affects the index, then we may witness an attempt by the bears to breach the other important resistance at 32920.
