EUR/USD
The first day of the week passed calmly for the European currency. We saw a slight decline in the early hours of the day, but after the opening of the European session, we saw trading activity ramp up around the 1.0160 support, after which the currency pair began a slow and painful rise. In the first hours of the European session, we saw an upside surge, which was then corrected, but later in the day, the euro managed to reach a daily high of 1.0221, at which point the gains were capped. Today, there is a lack of data that could potentially help the pair to sustain its growth. For now, the pair remains locked in a range and we could talk about a trend only after a confirmed breach of either border of the range.
USD/JPY
Тhe Ninja was in low volatility territory on Monday. The day started calmly, with no big moves even at the opening of the European session. At the U.S. open, however, the dollar extended its decline and we saw the pair bouncing off the 134.40 support and managing to end the day at about 50 pips higher than the mentioned key level. In the early hours of today, we saw the release of a set of macroeconomic data, but so far there has been no reaction to it on behalf of traders. Whether the dollar will be able to recover against the yen remains to be seen in the coming days. However, if the dollar performs poorly, then a further decline in the currency pair is not excluded.
GBP/USD
Monday was a choppy day for the Cable. Initially starting with a slight rise, the opening of the London stock exchange fuelled it further and the pair reached the resistance at 1.2134, from which it entered a downwards spiral and erased all of its gains by the end of the day. In doing so, the day ended at almost the same values as it had started. Today, there is a lack of macroeconomic data that is expected to give the currency pair a clear direction. Whether the GBP/USD will be able to secure its long-term recovery will depend on the strength of the dollar. If it continues to be weak, then this will allow the sterling to seek new highs, but if we see a strengthened U.S. currency, then this could lead to a prolonged decline in the GBP/USD.
EUGERMANY40
The German index opened the day with a small downward gap and managed to fill it up within the next few hours. As the European session opened, we saw a slight downward correction, but after the increased trading activity around the 13600 support, the EUGERMANY40 managed to climb to a daily high of 13747, but failed to breach the previous week’s high. There are no major events today to give the index a boost, but its correlation with the U.S. indices seems to be high, and so they may dictate the German index’s direction today as well.
US30
The blue-chip index extended its growth on Monday. In the early hours, we saw the start of an upward movement, which around the opening of the U.S. stock exchange managed to reach a new monthly high of 33111. However, there the bears found good entry prices and some of the growth was corrected as the day managed to close at around 32896. Today, whether the rise in the US30 will continue will depend on whether the dollar will extend its decline. However, if we see a strengthening of the dollar, then this could lead to a correction in the index, despite the absence of important macroeconomic data for the U.S.
