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Daily Technical Analysis


After reaching the support at 1.0293 in the early hours of yesterday, the currency pair started a convincing decline. The key level of 1.0232 could not hold the front and declines continued until the end of the day, breaking through all possible supports. The JOLTS data from the U.S., which we saw at 14:00 GMT, was positive for the dollar and it continued to weigh on the euro, with the EUR/USD ending the day nearly 130 pips lower – at around 1.0164. Today, there is a range of EU data due to be released between 06:00 GMT and 09:00 GMT. The results should be watched closely by traders, with pressure on the euro expected to continue to build up.


The currency pair managed to bounce back from the local low at 130.40 in the early hours of yesterday. The key level of 132.25 was breached and the gains continued. The day ended at values at around 133.15, a price that stopped the USD/JPY’s rally in its tracks. There is no data today that is expected to help the Ninja reverse the dollar’s strength, but if the data at 14:00 GMT turns out to be negative, it could help the downtrend to continue with renewed strength. Of course, if the data is ruled out as positive for the dollar, then the recovery from the mentioned bottom could continue and the market may be looking to reach values at around 134.55.


After the beginning of the decline on the previous day from the level at 1.2291, the correction continued and briefly found support, but after reaching the resistance of 1.2236 again, the pressure continued. The day ended above the support at 1.2155, where it managed to stabilise. Today, the Cable may be affected by data from the UK on the managers’ services assessment. If it is considered positive, then the currency pair could reach towards prices above 1.2235, but if we see a disappointing report, then prices can continue their correction towards the support at around 1.2100.


The German index is still locked in a tight range. The correction that started at the end of last week continued and we still cannot see prices going above 13563 for a whole week now. On Tuesday, after reaching the lower end of the range, namely 13358, the index bounced towards the resistance of 13504 and stopped its growth there once again. The day ended without much change in prices compared to Monday. Today, we may see some volatility following the release of the German trade balance data at 06:00 GMT and the managers’ services assessment report at 07:55 GMT. Whether the German index will be able to breach any of the levels of its range remains to be seen.


The correction that started on Monday continues because of Nancy Pelosi’s visit to Taiwan that sparked renewed tensions between the U.S. and China. The uncertainty surrounding China’s aggression has traders trading timidly in the blue-chip index, with the US30 entering a 200-point range on Tuesday that it could not break free from. Among the more important data releases today is the U.S. services managers rating data at 14:00 GMT. For the index to continue its growth from last week, the data should be interpreted as positive and the risk surrounding the visit to Taiwan should be reduced. However, if we hear more threats and see a rise in fear-based volatility, then the index could head towards a crash.

DeltaStock Inc.
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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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