EUR/USD
The first trading day of the week passed calmly and the pair entered a corrective phase after reaching the resistance at 1.1480. The onset of the bears around this level seems hesitant and is currently limited by the local support at around 1.1410. Such a shallow pullback suggests that the bulls are still in position and that a new strong rally can be expected. If prices remain above 1.1410, then a breach of the resistance at 1.1480 can be expected, and a possible next target for the movement may be the zone of 1.1580 – 1.1600. In case the local support is breached, the next zone that would support the bulls is 1.1320, followed by the impulse’s starting point at 1.1266.
USD/JPY
The dollar fell slightly against the yen on Monday, but in the early hours of today, all losses have been recovered. The bulls found support at around 114.90, and at the time of writing, prices are testing the resistance at 115.40. This zone is expected to be overtaken and the rally is to continue towards 115.66 and 116.00. On the higher time frames, the sentiment seems mixed and it is likely that, in the next few days, the pair will be trading in a range between 114.30 and 116.00. The first daily support remains at 114.90.
GBP/USD
The Cable ended the day without significant change and prices remained above the support at around 1.3510. This area remains the first daily support. The first resistance for the bulls is 1.3548, followed by 1.3607. Volatility is expected to shrink and the market is likely to consolidate between the 1.3510 support and the 1.3607 resistance. Expectations remain mixed and a breach of either zone would signal for the market’s future intentions.
EUGERMANY40
The German index is struggling around the resistance at 15245, and in the last two sessions, prices have been jumping back and forth between this zone and the support at 15075. The expectations are positive – for a breach of 15245, with the market also possibly forming a new resistance at around 15340. The possibility for a new test of the lows at around 14960 or at 14840 is still on the table. Even in such a scenario, however, the expectations for a rally are still intact. The main weekly support for the index is found at around 14807 and this area could prove to be of great interest for the bulls. When the bulls return to the market, their targets could be 15470 and 15700. Serious bearish scenarios at the moment can be expected only if 14807 is breached.
US30
The U.S. blue chips are performing better than their European counterparts and prices are currently hovering over the breach of the structure above 34800. This is also the main daily support level. Yesterday, the US30 failed to find a clear direction and the price action confirmed the resistance at 35335. Expectations remain positive, at least until the support at 34800 is breached. This would worsen the overall market sentiment, with further supports for the index being the levels at 34436 and at 33730. A breach of the resistance at 35335 would allow for a new test of the high at 35709. Although the markets have stabilised, profits are still fragile and any negative events could easily lead to a new test of the lows at around 33730.
