During yesterday’s trading session, the bulls found the level at 1.0640 to be a good opportunity to enter the market and we witnessed a rally that led to an increase in the value of the euro against the U.S. dollar, which led the pair towards the critical resistance at 1.0746. At the time of writing, the pair is testing this resistance zone and a confirmed breach of this level would pave the way for the pair towards the psychological level at 1.0800. In the opposite direction, in case the bears prevail, then a downward movement towards the support at 1.0641 may take place instead. However, even if the bears take control, the pair may still enter a consolidation phase in the range of 1.0641 – 1.0746. During today’s session, market participants will closely follow the announcement of the retail sales data for the eurozone (09:00 GMT), as well as the non-farm payroll change data for the U.S. (12:30 GMT) and the unemployment rate change data, also for the U.S. (12:30 GMT).
The pair is consolidating in the narrow range of 129.54 – 130.23 after the initial strong dollar rally that we witnessed since the beginning of this week. The consolidation may continue during today’s trading, but the buyers will likely be cautious because a deeper correction may develop as the Ninja may try to recover part of its recent losses before a possible resumption of the uptrend is to take place. Only a confirmed breach of the resistance at 130.23, however, would strengthen the positive expectations for a possible expansion of the upward trend. If this scenario is realised, then the next target for the bulls would be the resistance level at 131.22. In case the bears manage to violate the lower border of the range, their next target would be the support at 128.56.
The pair successfully bounced back from the support at 1.2470 and the bulls convincingly led the pair towards a test of the resistance at 1.2587. In the early hours of today’s trading, the pair is hovering just below this level and, if they manage to overcome it, then an upward movement towards the resistance at 1.2657 is а highly possible scenario. However, if this level resists the bullish pressure, then it could be expected for the pair to remain in the range of 1.2587 – 1.2470.
The value of the index increased by approximately 2% since the beginning of yesterday’s trading session, and the confirmed breach of the resistance at 14580 may be considered as a signal for a continuation of the upward move. If the price holds above this level, then we may expect a further appreciation towards the next resistance at 14910. In case the bullish momentum fades and the price falls below 14580, then the index may return in the range of 14580 – 14310, with a possible test of the lower border being on the map as well.
The U.S. blue-chip index gained some ground during yesterday’s trading session, but the bulls could not gain enough momentum to attack and violate the resistance at 33458, and so the consolidation phase in the range of 32551 – 33458 is still intact. The overall market outlook remains positive – for a further appreciation towards the psychological level at 34000, but only a successful violation of the upper border of the range may give the bulls a chance to attack the mentioned level.