EUR/USD
Although the single European currency managed to regain some of its lost positions against the U.S. dollar, the bulls were limited around the resistance level at 1.1107. The bears managed to gain momentum, and as the pair entered a consolidation phase, the subsequent depreciation of the euro against the greenback could deepen towards the support zone at 1.0936 and the local bottom at 1.0800. During the last trading session for the week, no economic news is expected to affect the market, but investors continue to follow closely the events around the war between Russia and Ukraine.
USD/JPY
The U.S. dollar continues to gain ground against the Japanese yen as the bulls easily overcome any resistance in their way. The next significant area in front of the currency pair would be the 117.00 zone. In a downward direction, the main support is the level at 115.73, and in case of a successful breach, it is possible to witness the resumption of the range move of 114.73 – 115.73.
GBP/USD
The support area at 1.3099 played its role, and from the beginning of the last session, the bulls took control for a brief moment. At the end of the day, however, the bears regained control of the market and brought the price towards the local minimum at 1.3099. At the time of writing the analysis, the currency pair is sitting directly below the mentioned support and so the breach still cannot be considered complete. A confirmation here could give additional impetus to the sellers, which in turn would deepen the sell-off down towards the level of 1.3000. The manufacturing production data in the UK (today; 07:00 GMT), as well as the GDP data for the United Kingdom (also today; 07:00 GMT) could affect the volatility of the currency pair.
EUGERMANY40
The German index failed to keep its gains after we witnessed a significant recovery earlier this week. At the time of writing, the EUGERMANY40 is trading directly below the support area at 13345. If the bears manage to maintain their control, we could see an additional sell-off wave aimed towards the local bottom at 12430. Rising inflation and uncertainty around the war between Russia and Ukraine are among the leading factors responsible for the high market volatility.
US30
After a significant recovery from the middle of the week, the U.S. blue-chip stock index failed to overcome the resistance at around 33400 twice. This could be a sign that the bears will take control again, and in the event of a successful breach of the 32930 level, could bring the price towards the local minimum at 32360. Inflation in the United States hit a forty-year record high of 7.9% in February and speculations that the Federal Reserve would have to end its loose monetary policy faster started being priced in. This, combined with the war in Ukraine, has led to market instability and increased volatility.
