EUR/USD
We still cannot witness a successful downward breach at the 1.1321 support zone as the bulls thwarted the breakout attempt during the previous trading session. At the time of writing, the currency pair is located just above the mentioned zone, and the most likely scenario is for another attempt at breaching it, followed by a test of the next significant support at 1.1279. This week, we are expecting a lot of long-awaited economic news that would affect the volatility of the currency pair. Among the most anticipated is the announcement of the Fed interest rate decision (Wednesday; 19:00 GMT), as well as the GDP data for the U.S. (Thursday; 13:30 GMT).
USD/JPY
The bears failed to reach the support zone at 113.50 and, at the time of writing, the bulls are trying to take control. Their first goal is expected to be a test of the resistance zone at 114.21 and a successful breach here would strengthen the appreciation of the U.S. dollar against the Japanese yen, which could lead to an additional appreciation towards the local highs at around 116.00. On the other hand, if investors lose their confidence in the U.S. dollar, influenced by this week’s decision of the U.S. Federal Reserve, then we could witness a sharp decline towards the support zone at around 110.00.
GBP/USD
It seems that, during the last week, the bears managed to take full control, leading the pair towards the support area at around 1.3571, which completely disrupted the upward trend for the Cable. The consolidation phase under the mentioned support is likely to continue, with the potential to fall towards the next significant support area at 1.3483. The announcement of the Fed’s interest rate decision (Wednesday; 19:00 GMT) will be crucial for the future of the currency pair.
EUGERMANY40
The sell-off for the German index was limited to just below the support level at 15500 and, at the time of writing, we are seeing consolidation around this level. It is quite possible that the decline will continue, but we should also not exclude a short-term upward correction here, which is likely to remain limited below the 15665 resistance zone. The implementation of this pessimistic scenario could signal the end for the upward trend of the EUGERMANY40 index. The next significant support is found at around 14800.
US30
The downtrend for the U.S. blue-chip stock index continues, with the bulls currently managing to limit the sell-off to just above the support at 34000. We may see a short-term upward correction, after which the downtrend may continue. A breach of the support zone at 34000 would significantly boost the sell-off. The news, mentioned in the EUR/USD analysis, will be crucial for the future of the U.S. index.
