Thu, Jun 08, 2023 @ 09:52 GMT
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Daily Technical Analysis


The sell-off slowed down and the decline was limited to the support zone at around 1.0360. The market seems to be oversold and the downward momentum looks to be coming to an end. The EUR/USD is therefore expected to enter a deeper and more complex correction. A new test of the area at around 1.0360 is possible, from where prices are expected to rebound towards the resistance at 1.0480. If a deeper correction develops, then the zone should be extended and the bulls would possibly be limited by the resistance at 1.0580. Around this resistance, a resumption of the downtrend, with a potential target of 1.0300, can also be expected.


On Friday, the U.S. dollar scored some moderate gains against the yen, which continued during the early hours of today. At the time of writing, the pair is headed towards a test of the resistance at 130.45 and, in case of a confirmed breach, we may expect an upward movement towards the next resistance level at 131.25. However, if the mentioned level resists the bullish pressure, then a corrective movement towards the support at 127.64 is a possible scenario.


The sterling started to rise at the beginning of the session, reaching the resistance zone at 1.2275 and the expectations are for this level to be violated and for the pair to head towards the next critical resistance at 1.2400. In the opposite direction, only a confirmed breach of the support at 1.2170 would be an opportunity for the bears to attack the psychological level of 1.2100 and confirm the negative market sentiment for the continuation of the downtrend.


The recovery of the German index continued during the early hours of today’s trading and a potential test of the resistance level at 14163 is highly possible, where a confirmed breach could lead to new profits for the index, heading the price towards the resistance at 14600. However, a short-term correction towards the support at 13885, and even 13300, is not to be excluded as the long-term downtrend is still in place.


At the time of writing, the U.S. blue-chip stock index is headed towards a test of the resistance at 32580. If the bulls manage to keep the price of the index above the support at 31890 and gain just enough momentum, then we may witness a further move towards 33000. However, if the bears re-enter the market and successfully violate the support at 31900, then we should instead see a decline towards 31220.

DeltaStock Inc.
DeltaStock Inc.
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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