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Daily Technical Analysis


After the successful breach of the zone at 1.0086, the European common currency continued to depreciate against the dollar, and during the early hours of today`s trading, the pair is looking to test the important support at 1.0015. A successful violation of the mentioned level could easily lead to new losses and would strengthen the negative expectations for the future path of the pair. If the bulls enter the market, then their first target for them could be found at the level at 1.0086, which is currently acting as resistance. A breach of the next zone at 1.0119 could start a larger correction towards the major resistance at 1.0188. Among the most anticipated news will be the release of the data for the U.S. GDP and the initial jobless claims (Thursday; 12:30 GMT), as well as the Jackson Hole symposium (25-27 August).


The U.S. dollar recovered most of its losses against the yen from the end of last month, and at the time of writing, the pair is testing the local high at 137.28. If the bullish attack continues, then a confirmation of the breach for the buyers could lead to a rally and could easily lead to a rally towards the levels at around 138.00. If the bears prevail, then the expectations are for a correction and test of the support at 135.38. A successful violation of the zone at 134.33, followed by a breach of the lower level at 133.29, could lead to a change in the current sentiment of the market participants.


The appreciation of the dollar against most of the world’s major currencies led to new losses for the Cable, and after the test of the support at 1.1804, the pair consolidated above the mentioned zone. If the bears gain enough momentum, then a successful violation here could easily continue the depreciation and could lead to a move towards the lows from July at around 1.1760. If the bulls prevail, then the first resistance for them would be the level at 1.1935, followed by the upper target at 1.2020.


The test of the support at 13507 was not successful, and after the negative start of the trading week for the German index, the price held above the mentioned zone. If the bulls prevail, then an attempt for a breach of the resistance zone at 13623 is a highly probable scenario. However, only a violation of the zone at 13785, followed by a breach of the upper one at 13884, could form the current move as corrective and could spark a new rally towards 14000. If the bears enter the market, then a successful test of the support at 13339 could easily deepen the depreciation and lead to a decline towards 13089.


The U.S. blue-chip index continued to decline, and after the breach of the support zone at 33650, the price consolidated at around the current level at 33604. If the bearish attack continues, then a successful test of the zone at 33304 could easily deepen the sell-off towards the important support at 32917. Better-than-expected GDP data for the U.S. and a positive initial jobless claims report (Thursday; 12:30 GMT) could help the bulls prevail. Their first target is the zone at 33650, which is now acting as resistance. A violation of the upper level at 33892 could strengthen the positive expectations and could easily lead the price towards the highs from April at around 35315.

DeltaStock Inc.
DeltaStock Inc.http://www.deltastock.com/
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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