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Daily Technical Analysis


The pair ended yesterday’s volatile session without significant changes. Data on the declining U.S. GDP kicked off a technical recession in the country, which in turn supported the euro. Nevertheless, expectations remain negative, and the downtrend is not broken yet. Prices continue to move in a range with support at 1.0120 and resistance at 10270. First daily resistance for the bulls is the area at 1.0220. A break above 1.0270 will be needed for a change in sentiment, but fundamentals for a stronger euro are also missing. A more likely scenario is another bear attack towards 1.0120. The zone has already been breached this week and a breakout is not out of the question. This would pave the way for a new test of 1.0000 and a parity between the euro and the U.S. dollar. Today, on the economic radar is data coming from the Eurozone – German GDP (07:00 GMT) and Eurozone Consumer Price Index (10:00 GMT)


The pair has lost over 2% since the U.S. interest rate announcement earlier this week. It seems the market is entering a long-awaited correction. The main support at 139.93 was broken without much difficulty for the bears. Prices are approaching support coming from the higher time frames – 134.20. It is likely that the declines will slow and the market will correct some of the recent losses. On a possible breakout, the next area expected to offer support is 131.50. The uptrend is still in place and a failed peak on the larger time frames will be needed to change sentiment. For today, the first support for the bulls is 134.20 and the first resistances are 134.93 and 135.70.


In recent days, the Sterling managed to recover to the resistance around 1.2170-1.2184. The zone comes from the larger frames and may not be overcome on the first time. Expectations are that the market will remain in a corrective phase with main support around 1.2040. First support for the day bulls can expect around 1.2100-1.2086. A possible break of 1.2170 could open the way to the next resistance around 1.2300.


The German index once again tested the support around 13120, then the bulls took control for the rest of the day and the session closed around the highs. The 13430-13450 bear zone has not been breached yet and declines from the current levels are not ruled out. A breakout by the bulls, however, could liquidate short positions in the zone and prices could head towards the next resistance at 13680. First support for the day is 13240. Failure of the bulls today to capture 13430 could allow for further dips below 13120 or a continuation of trading in the current range.


US30 managed to reach the key resistance at 32600 after once again “bad news is good news” for the market. Short squeeze and FOMO fear could push the U.S. markets higher, with the next major resistance for the index at 33100. First support for the bulls is at 32280. The zone has yet to be tested and confirmed, so corrective moves are not out of the question. Sentiment around current levels is mixed, and volatility is expected to remain high due to deteriorating liquidity.

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These analyses are for information purposes only. They DO NOT post a BUY or SELL recommendation for any of the financial instruments herein analyzed. The information is obtained from generally accessible data sources. The forecasts made are based on technical analysis. However, Delta Stock’s Analyst Dept. also takes into consideration a number of fundamental and macroeconomic factors, which we believe impact the price moves of the observed instruments. Delta Stock Inc. assumes no responsibility for errors, inaccuracies or omissions in these materials, nor shall it be liable for damages arising out of any person's reliance upon the information on this page. Delta Stock Inc. shall not be liable for any special, indirect, incidental, or consequential damages, including without limitation, losses or unrealized gains that may result. Any information is subject to change without notice.

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