EUR/USD
Today’s trading session for the single European currency got off to a shaky start as the euro continued to trade just below the resistance at 1.0188. A successful breach of this level would be an opportunity for the bears to go forward with an attack on the local resistance at 1.0220, where a confirmed breach of this critical level would pave the way for the pair towards the next critical one lying at 1.0276. In case the resistance at 1.0188 withholds the bulls’ pressure, then we may expect a wave of sell-offs heading the price towards the support at 1.0120. This week started with low volatility, which may suggest that the pair may remain locked in the range of 1.0120 – 1.0180 before investors can enter the market and define the future path of the pair. Today, increased volatility can be expected around the release of the initial jobless claims data for the U.S. at 12:30 GMT. A worse-than-expected data may trigger an impulsive move and a test of the resistance at 1.0276. However, the most likely scenario for today’s trading session is for the bulls to lead the pair towards the local resistance at 1.0220. On the other hand, the long-term negative sentiment for a new EUR/USD parity is still intact and any new highs here may be considered as a good opportunity to enter the market through short positions.
USD/JPY
The critical resistance at 135.38 managed to resist the bulls’ attack and the pair is currently headed towards a test of the support at 134.33 – a retracement that may be considered as a corrective move – before the upward movement is to potentially resume its course. A breach of the resistance at 135.38 could definitely be considered as a confirmation of the positive sentiment and would most probably lead the pair towards the next zone at 137.28. However, a potential deepening of the sell-offs and a violation of the mentioned support may lock the pair in the range of 133.29 – 132.56.
GBP/USD
The support at 1.2020 appeared to be a strong obstacle for the bears to overcome. However, the forecast for today’s trading session is for a slight upward movement towards 1.2070, where the bears would most probably try to take control over the market and make another attempt to violate the mentioned support. A successful breach of this support level would easily head the pair toward the one at 1.1935, as the market sentiment remains strongly based on the appreciation of the greenback. On the other hand, if the bulls gain enough momentum to overcome the resistance at 1.2063, then their next target would be the resistance at 1.2134.
EUGERMANY40
During yesterday’s trading session, the index underwent a massive sell-off, thus decreasing its value by approximately 2.5%, and at the time writing, the bears are trying to breach the support at 13623. A confirmation of the breach could continue the sell-off and easily head the bears for an attack on the psychological level at 13500. A violation of this zone could lead to new losses and could strengthen the negative expectations for the future path of the index. The first resistance for the bulls is now the level of 13785, followed by the upper zone at 13884. Keeping in mind the extreme drop from yesterday, however, a corrective movement towards the mentioned resistances is still quite likely.
US30
The US30 ended the session almost unchanged, holding its value just above the critical support at 33892. In case the bears manage to overcome this level, then it is highly likely to witness a rally towards the psychological level at 33500, and even lower towards around 33300. However, the mentioned support is quite strong, thus the forecast for today’s trading session is for the trading activity to remain above this level and for the price to consolidate in the range of 33892 – 34279.
