EUR/USD
The single European currency is still locked in the range that started last week as any upward movement is denied by the bears. The strong dollar does not allow the euro to rise for now, but the bulls are not willing to give up the zone at 1.0525, a support which has been proved many times. The data for the CPI levels in the U.S. will come out at 12:30 GMT, expecting a slight slowdown of its growth by 0.2% compared to the 1.2% increase that came out last month and strengthened the dollar. If the traders’ reaction for the dollar is positive, we can see a break at the bottom of the range and deepening of the trend below 1.0480, but if the dollar disappoints, the bulls may try another attack above 1.0580.
USD/JPY
After reaching the levels around 131.30 once again, the yen began to show new strength, which continued to weaken the dollar. It is not allowing USD/JPY to rise above the resistance of 130.50, but at the same time the bulls do not allow a fall below 129.80. The danger for the yen comes from the U.S. inflation data at 12:30 GMT. If the results have a positive effect on the dollar, we can see a renewed attack of 131.30 levels and possibly break above them, but if the traders react to the information negatively, a drop below 129.80 in search of a new bottom around 128.66 should not be excluded.
GBP/USD
The pound chart seems to be locked between the resistance of 1.2377 and the often defended this week demand zone of 1.2300. The rise of the sterling is threatened by the expected data on April’s inflation in the U.S. at 12:30 GMT, which could have a positive impact on the dollar and send GBP/USD below 1.2300 in search of a new bottom. The opposite scenario and upward movement can be seen only after a weakening of the dollar due to data on the U.S. inflation and a convincing break of 1.2377.
EUGERMANY40
EUGERMANY40 managed to bounce off the bottom of 13300 and climb as much as 420 points in the European session. However, the attack of the bulls ended with the opening of the U.S. stock exchange and the reaching of the resistance of 13720. The following correction brought the German index to key levels of 13525 where it found support and a few hours later managed to close at 13568. Whether the growth continues and the support holds depends on the bulls’ confidence in today’s session. If so, we can see a new attack on 13717 in search of a new peak above 13825, but if the U.S. stock market shows weakness again, usually EUGERMANY40 is the one to follow.
US30
During the European session, the blue-chip index rose, reaching a daily high of 33036. The decline came immediately after the opening of Wall Street as the attack pushed the index to the 32000 mark where the bulls attacked and staged a 400 point rally to 32433. However, the bears did not give up and the index ended the session at 32132. The turbulent week for the U.S. indices is due to continue, with the data for the April CPI in the U.S. (12:30 GMT) possibly helping restore the index. However, if traders remain disappointed with the data, a deepening trend below 32,000 can not be ruled out.
