EUR/USD
On Thursday, the single European currency started the early hours of the day with an uptrend. After the opening of the session in Europe, the key level of 1.0000 was breached and the movements continued towards the formed resistance at 1.0034. There, the bears took control and wiped out the day’s hard-earned pips. Support was found again at 0.9944 and the day ended at around 0.9974. Today’s moves in the currency pair are expected to be dictated by the dollar’s strength, as at 12:30 GMT we’ll see the data on the U.S. personal consumer goods prices, as well as Jerome Powell’s speech on stage at the Jackson Hall Symposium at 14:00 GMT. Whether the euro will be able to break free from its range-bound trading remains to be seen after the release of all mentioned data.
USD/JPY
The Ninja is locked in a range once again, this time between 136.30 and 137.15. Yesterday’s session started with a slow decline, reaching the mentioned bottom of the range, then managed to find slight support, and by the end of the day, prices stayed almost the same as they were at the beginning of the previous day, namely the level of 136.50. The consolidation here is clearly continuing and today’s movements will be dictated by the strength of the dollar. The series of already mentioned data is expected to define the direction of the USD/JPY as well. The expectations are for the dollar to continue to grow stronger, but this can only happen after a confirmed breach of the upper border of this week’s range.
GBP/USD
The movements in the Cable on Wednesday were almost identical to those of the euro dollar. The day started with a slight uptick, and after the London open, we saw a breakout at a key level, which once more headed the pair towards the resistance at 1.1855. There, the bears took control and wiped out all accumulated growth for the day. Support was found at 1.1792 following four hours of unsuccessful attempts for a breach below that level. While there is no expected UK data for today, the dollar will likely weigh on the GBP/USD after today’s data is released. Whether the dollar will continue to put more pressure on the pound remains to be seen.
EUGERMANY40
Prices in the German index yesterday continued to rally. In the early hours of today, we saw a breach of a key level that, after the opening of the European session, led the index to the formed resistance at around 13360. Later, however, we received the business climate data for Germany, which despite being positive, made traders unhappy and so an aggressive correction towards 13205 followed. However, the correction was limited to this level. As the day progressed further, we saw more growth anda second failed attempt to reach the top for the day. Whether we will see a confirmed breakout today depends on whether the correlation with the U.S. indices continues. Traders are holding their breath for Jerome Powell’s remarks, which are expected to weigh on all indices, if the correlation continues.
US30
Wednesday was a highly volatile day for the blue-chip index. As the day started, we saw strong upward moves, but after the opening of the European session, the rally stopped at the resistance of 33250. There, the bears found good entry prices, corrected the accumulated growth throughout the day, and pushed the price down towards the support of 32925. The support held its ground once more and the market made a second attempt to breach the mentioned daily support. While successful at first, it was not confirmed until the end of the trading day and so prices ended the day at around 33233. As with the other markets, Jerome Powell’s remarks are expected to have a significant impact here as well. Whether the upward moves that started this week will continue remains to be seen later today.
