EUR/USD
After successfully breaching the parity level at 1.0000, the euro continued to lose ground against the dollar, reaching the support at 0.9900. Apparently, during yesterday’s trading session, the pair managed to rebound from the mentioned support and recovered approx. 100 pips from its losses. Afterwards, the bulls made an unsuccessful attack on the critical resistance at 1.0000 and trading remained slightly below this critical zone. This impulsive upward move was a good opportunity for the sellers to take short positions at better entry levels in this falling market. The downtrend is expected to continue, but only a confirmed breach of the support at 0.9900 would strengthen the negative expectations for a further depreciation of the euro against the U.S. dollar. This scenario could also possibly suggest a stronger bearish presence that may head the price towards the bottom at 0.9800. Despite the positive sentiments for an appreciation of the dollar, a slight correction may develop and the pair may enter a consolidation phase in the range of 0.9900 – 1.0000. Market participants are not likely to aggressively take positions аs fake breakouts of the range are highly possible in these uncertain conditions. The support at 0.9900 may be considered as a good opportunity for the buyers to take short-term positions and wait for the pair to consolidate in the range of 0.9900 – 1.0000, gaining profits at the middle of this range. However, limiting losses closely below the support at 0.9900 via stop orders is highly recommended in case such positions are taken.
USD/JPY
Since the beginning of the trading week, the bulls struggled to overcome the resistance at 137.50, but their attempts were unsuccessful and yesterday we witnessed an impulsive downward movement and a test of the support at 136.10. However, the mentioned support zone resisted the bears’ pressure and the pair is currently locked in the range of 136.10 – 137.50. Only a breach of either border of the range, however, would allow investors to decide on which positions to take next. If the resistance at 137.50 is breached, then we may witness a continuation of the uptrend towards the next support level lying at 138.00. In the opposite direction, if the bears manage to violate the support at 136.10, then the correction would continue downward towards the next one at 135.38.
GBP/USD
During the previous trading session, we witnessed an impulsive corrective move towards the resistance at 1.1855, but this level managed to resist the bulls’ attack and the pair is currently holding just below this level. The expectations are for the downtrend to continue and it is highly likely that the bears could make another attempt to overcome the support at 1.1725. A successful breach of this level may suggest a resumption of the downtrend, with the next target for the sellers being the psychological level at 1.1700. A consolidation in the range of 1.1725 – 1.1855 may be considered a highly possible scenario for today’s trading session. On the other hand, a successful breach of the resistance at 1.1855 may lead to a deeper correction, which could pave the way for the pair towards the next critical resistance at 1.1932.
EUGERMANY40
The sell-off for the German index has been going on since last week, and in the early hours of today’s trading session, the depreciation is still in full swing. A successful breach of the support area at 13066 would encourage the bears and help them lead the price towards the next significant support at 12844. A deepening of the sell-off is not excluded as a consequence of the persistent negative expectations of investors. A successful breach of the mentioned support, followed by the strong sell-offs, may both result in a consolidation in the range of 12844 – 13066. On the other hand, if the price reached the resistance at 13312, then this may be considered as an opportunity for the bears to enter the market at better levels, but a violation of the mentioned level would easily pave the way for the bulls towards the resistance at 13474.
US30
The U.S. blue-chip stock index continued to fall, resulting in a short-lived correction towards the resistance at 33176, but the price quickly rebounded from it. The index is currently headed towards the support at 32742 and a breach of this level would give the bears additional confidence to head the US30 towards the next significant support at 32454. However, if the bulls re-enter the market and successfully limit the sell-offs above the support at 32742, then it is highly possible to see a deepening of the correction that may lead the price in a positive direction. If this becomes the case and the bulls manage to overcome the resistance zone at 33176, then this could lead to a further appreciation and a test of the resistance at 33552. The sentiment at the moment remains rather negative, thus any possible correction would be considered as an opportunity for better entry levels for the sellers. In terms of economic events, market participants are currently looking forward to Fed Chair Jerome Powell’s speech, as well as the Jackson Hole Symposium, both scheduled for Friday at 14:00 GMT.
