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Daily Technical Analysis


The euro started the week with a loss at low trading volumes. The breach of the 1.0810 zone is currently limiting the buyers, and it is possible that with the opening of the European markets after the holidays, the zone could be tested again. Expectations remain negative, with the daily support for the pair being 1.0757. A potential breach of this level would create the likelihood of the price declining towards 1.0640. A full recovery from the losses at the moment seems unlikely and forecasts are for an acceleration of the downtrend. Given the upcoming holidays, the bulls could attempt to fill in the imbalances after the drop from 1.0922, but all their attempts are expected to be limited to the zone of 1.0840 – 1.0850.


The uptrend continues in full force and it is about to become parabolic. The opinion that the move is caused by the highest time frames and by significant changes in the macro environment has been confirmed and 149.80 can be determined as a potential target of the impulse. The last significant resistance at 125.75 failed to hold the bulls for long, and this week prices quickly moved away from the zone. The first support zone for the bulls is 126.96, followed by 126.48. In the early hours of today, the rally continues and minor pullbacks can be expected, however the growth is expected to continue in the next sessions as well.


The Cable is also experiencing serious difficulties against the U.S. dollar, and in the early hours of today, prices turned lower to test the support at 1.2986. A breach of the zone would provoke a decline towards 1.2850 and 1.2660. It is expected that the downward movement will gain momentum and that any possible bullish corrections would remain limited by the resistance at 1.3045.


The German index continues to trade without a clear direction and so far prices have remained above the support at 13960. The first significant resistance can be noted at around 14180, followed by 14320. The war in Ukraine continues to weigh on the European stock markets and investors seem to be waiting for the quarterly earnings releases before making any more serious moves. The sentiment is mixed and a confirmed breach of the consolidation would be a telling sign of the future market developments.


The US30 narrowed the losses and the lack of new lows showed the first signs of a reversal. The first support for the bulls is the area at 34280, while at around 34450 we can see the accumulation of positions. With the kick-off of the corporate earnings season, an increase in activity is expected, while a more tightened monetary policy by the Fed does not necessarily mean that we should expect a negative market performance. A breach of 34555 would open the possibility for a test of the larger structure at 34882, and if it is overtaken, then a new test of 35346 could also be expected.

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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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