Mon, May 29, 2023 @ 22:09 GMT
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Daily Technical Analysis


Today’s trading session for the single European currency began with a breach of the support for the bears at 1.0738. The bulls then tried to regain positions, but the sellers did not back down and the breach of the aforementioned level was confirmed.. If they remain in control, then the next support they will most likely try to attack is the one at 1.0640. From the higher time frames, we can see that the next resistance that the bulls would try to face is sitting at 1.0800. During today’s trading session, traders and investors will both be keeping an eye on the ADP non-farm employment change data (12:15; GMT) and on the ISM manufacturing data (14:00; GMT).


The bulls managed to rally the Ninja with more than one figure as the trading session started with a breach of the resistance at 128.05. At the time of writing the analysis, the bulls are moving towards the next resistance at 129.45, but a corrective move is quite likely, given the magnitude of the recent rally. However, if the bears do manage to turn the market around, then the first serious obstacle for them would be the support at 128.05.


The trading session started promisingly for the bears as they managed to breach the support at 1.2587 and headed towards the next one at 1.2482. Their hopes were quickly dashed and the bulls were able to regain their positions above 1.2587. At the time of writing, the bears are again trying to break through this key support, and if they are successful, then the sell-off will most likely accelerate. If the bulls manage to tip the scales in their favour, then the first resistance they would have to deal with would be found at 1.2657.


In the last few days, the German index has been moving in the range between 14237 and 14580. At the time of writing, neither the bears nor bulls are so far able to prevail. If investors manage to increase their trading volumes, then they would have to first deal with the support at 14237 and then with that at 14100. On the other hand, the bulls would have to overcome the upper border of the mentioned range, and then the resistance at 14640 – a level that has not been reached since March this year.


The situation with the U.S. blue chips is rather neutral as currently neither the bulls nor the bears are managing to gain enough momentum. Despite this, volatility is expected to remain elevated and sharp moves in both directions are likely. The catalyst for these moves is expected to be the data regarding the ADP non-farm employment change (12:15; GMT), the ISM manufacturing data (14:00; GMT), and the ISM prices paid data (14:00; GMT). If the news for the world’s largest economy turns out to be positive, then the bulls could gain enough momentum to breach the resistance at 33457 and thus continue the rally.

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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