EUR/USD
The currency pair continues to move within the relatively narrow range of 1.0640 – 1.0740. During yesterday’s trading session, the bulls were limited to the upper limit of the mentioned range, after which they began to give way to the bears, and at the time of writing the analysis, the most likely scenario is for an attack on the support zone at 1.0640. A successful breach of the lower boundary of the range could deepen the sell-off towards the next significant support zone at 1.0540.
USD/JPY
The U.S. dollar continues to gain positions against the Japanese yen during today’s trading session. Should it reach the resistance at 132.72, we may witness a negative correction towards the first resistance at 131.22 in order to find better market entry levels and maintain the positive sentiment intact. The next more significant resistance for the currency pair, after the one at 132.70, is the area at around 133.70.
GBP/USD
The pound lost ground against the U.S. dollar once again, and at the time of writing the analysis, it is about to test the support zone at 1.2470. This level also plays the role of the lower boundary of the emerging range between 1.2470 and 1.2590. A successful breach of the mentioned support could give the bears the necessary incentive to strengthen their positions and direct the trade towards the next significant support at 1.2375. On the other hand, if the bulls successfully limit the sell-off at 1.2470, then we may return to the previous scenario of maintaining the range move and possibly testing the upper boundary at 1.2590. Today, volatility is likely to pick up after the announcement of the PMI services for the UK at 08:30 GMT.
EUGERMANY40
The fleeting breach of the resistance zone at 14580 could not be confirmed, after which the bulls lost some of their momentum. At the time of writing, the German index is trading just below the mentioned resistance, and the formation of a 14310 – 14580 range is a possibility. In the event of bull predominance, the next significant resistance zone would be the level at around 14850.
US30
The U.S. blue-chip stock index has been losing ground since the beginning of the week, with the bears holding it firmly in its grasp at the time of writing. This means that we could potentially witness a test of the support zone at 32550. The mentioned support also plays the role of the lower boundary of the formed range of 32550 – 33450. High volatility is likely to persist for the index going into this week as well. Should the sell-off deepen, we could witness a test of the local lows at around 31360.
