For the single European currency, the beginning of the week started rather positively. After the market opening, the rate tries to hold above 1.0088. The bulls’ gains from last week could continue, but for that to happen, they would need to test the second resistance at 1.0197. The bears, on the other hand, will look to steer the pair back towards the support at 0.9985. The downtrend for the euro is probably not over yet, but for now, the positive momentum from the ECB interest rate hike seems to be fueling the rally.
Over the past week, the yen managed to slow the dollar’s record gains against it. The price has managed to hold below the resistance at 143.06 for now, but the corrective phase may be coming to an end if this level is overcome. In case the bears have decided to come back, they would try to test the support at 140.64.
The beginning of the week started calmly for the currency pair and it managed to hold above the support at 1.1600. We are likely to see a range move and a retracement towards the resistance at 1.1497. A signal that the bulls may return for a longer period in the market would be a breach of the resistance at 1.1711. During the week, there will be important economic data for the pound, which could impact the exchange rate. The most important event is the decision of the Bank of England on the main interest rate on Wednesday at 15:00 EEST.
In the past week, the German index managed to overcome the resistance at 13105 and close above it. The positive sentiment is likely not over yet, but if the bears manage to break through the support at 12929, then we may see a deeper correction towards the 12717 level. However, if the resistance at 13205 is breached, there will likely be a more sustained comeback for the bulls, with their next target being the level at 13357.
The past week was successful for the U.S. blue-chip index and it managed to overcome the important resistance at 31952. At the beginning of the new week, the bulls will probably have a new target – overcoming the level at 32369. However, we should not exclude the possibility of a correction and the chance that the bears could return to the market. This, however, could only happen if the support levels at 31590 and at 31315 are both breached.