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Daily Technical Analysis


The European common currency suffered significant losses against the dollar and the pair slumped and tested the support at 0.9690. If the EUR/USD remains limited below the mentioned zone, then the expectations are for a continuation of the sell-off and a move towards the levels from 2001 at around 0.9410. The first target for the bulls can be found at the level of 0.9750. A successful violation of the resistance at 0.9812 could lead to a higher correction and a test of the major zone at 0.9877. This week, traders would focus on ECB president Christine Lagarde`s speech on Monday at 12:00 GMT, the speech of FED Chair Jerome Powell (Tuesday; 11:30 GMT), as well as on the U.S. unemployment claims data (Thursday; 12:30 GMT).


The recovery for the dollar against the yen continues, and during the early hours of today`s trading, the Ninja tested the resistance zone at 143.61. A confirmed breach for the bulls could easily lead to a new attack on the high at 144.93. А violation of the mentioned zone would strengthen the positive expectations for the future path of the currency pair and could lead to a move towards the levels at around 152.00. If the bears re-enter the market, then a successful test of the support at 142.61, followed by a breach of the lower target at 141.64, would both form the current move as corrective and could easily prime the pair for an attack on the important zone at 140.25.


The Cable slipped below 1.0400 and reached a new 37-year low. At the time of writing the analysis, the rate against the greenback is hovering around the current level at 1.0588, but if the bearish attack continues, then the expectations are for the sell-off to be prolonged and for us to see a new attack on the low at around 1.0338. If the bulls prevail, then they could lead the pair for a test of the resistance at 1.0884. Only a successful breach of the next target at 1.1217, followed by a violation of the upper zone at 1.1348, could potentially result in a recovery and could draw a more bullish picture for the GBP/USD.


Similar to the other leading markets around the world, the German index also lost ground and reached its lowest levels this year at around 12230. A new attack for the bears is still a highly probable scenario, but only a successful breach of the mentioned zone could easily continue the decline towards 12100. Better-than-expected data in Germany for its IFO business climate index (today; 08:00 GMT) could help the bulls prevail and they could lead the index for a test of the resistance at 12593. A violation of the upper zone at 12693 could lead to a recovery and could pave the way for an attack on the major zone at 12855.


The support zone at 29250 withheld the bearish attack and the index consolidated around the current level at 29445. If the bulls prevail, their first target could be found at the zone of 30020. A breach of the upper zone at 30542 could lead to a higher correction and a test of the resistance at 30866. If the bears re-enter the market, then a potential violation of the support at 29520 could deepen the decline and could easily lead to new losses for the American index. Among the most anticipated news this week will be the release of the initial jobless claims data (Thursday; 12:30 GMT).

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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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