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The US dollar recovered in anticipation of consumer price data on Friday. Medium-term sentiment remains upbeat and a break above 0.9760 may have put the greenback back on track as sellers rushed to cover their positions. The RSI’s overbought situation has briefly limited the upside but the bulls may see a pullback as an opportunity to accumulate. 0.9710 is the first support and 0.9600 an important level to keep the reversal intact. As the pair makes its way to parity once again, 0.9900 would be the next hurdle.

EUR/USD

The single European currency continued to move in the range between 1.0640 and 1.0750, but yesterday's trading session was more successful for the bulls as they tried to breach the closest resistance at 1.0746, which is the upper limit of the range. Their attempt to break through was unsuccessful, however, and they once more failed to come anywhere near the psychological resistance at 1.0800. If the bears manage to overcome the lower limit of the range at 1.0643, then it is possible that we could witness an attempt at overcoming the support at 1.0544. Important news for today, which will affect the currency pair, are the European Central Bank Interest Rate Decision (11:45 GMT), the follow-up press conference, when the ECB is expected to signal a rate hike in July, and the Initial Jobless Claims report (12:30 GMT).

USD/JPY

The Ninja rally continues in full force and it seems like there is nothing stopping the bulls from climbing all the way to the top. The next key resistance for traders would be the level of 135.00, a level that has not been reached for nearly 20 years. During today's trading session, the Japanese yen rose by almost a figure. However, if the bears manage to gain the upper hand, then they would probably have to breach the support at 133.00.

GBP/USD

The sterling continues to consolidate in the long-term range between 1.2400 and 1.265, as neither the bears nor the bulls have so far managed to gather enough momentum to breach the range. Breaking the upper limit for the bulls would mean that they will most likely have to deal with the resistance at 1.2770. On the other hand, if the bears manage to limit the sales to the point where they can breach the lower limit, then the next key support that needs to be overcome would be the level of 1.2370.

EUGERMANY40

Yesterday’s trading session for the German index can be described as successful for the bears, as during the early hours they managed to overcome the key support at 14580. At the time of writing the analysis, they are close to testing the next one at 14310, and if they manage to overcome it, then they would most likely reach the one at 14237 as well. Despite the negative sentiment, the bulls could still manage to gain enough momentum, but in order to do that, they would first have to deal with the crucial resistance at 14580. The European Central Bank Interest Rate Decision (11:45 GMT) is expected to spark volatility as investors look forward to finding out when and by how much the central bank will raise the interest rates in order to combat the extremely high inflation.

US30

On the U.S. blue-chip front, the bears managed to reach the support at 32933. At the time of writing, they have already breached it and are gearing to move onto the next one at 32550. During this week, the news that are expected to affect the U.S. index the most are the Initial Jobless Claims (12:30 GMT; today) and the CPI report for the United States (12:30 GMT; Friday). If the news turns out to be positive for the world's strongest economy, then the bulls may strengthen their positions and even attempt to breach the resistance at 33450.

Daily Pivots: (S1) 167.28; (P) 167.91; (R1) 168.93; More...

Intraday bias in GBP/JPY is turned neutral with today's retreat. Some consolidations could be seen but downside should be contained above 162.88 minor support to bring another rally. On the upside, above 168.67 will resume larger up trend to 100% projection of 150.95 to 168.40 from 155.57 at 173.02.

In the bigger picture, up trend from 123.94 (2020 low) is still in progress. Sustained break of 61.8% retracement of 195.86 (2015 high) to 122.75 (2016 low) at 167.93 will be a long term bullish signal, and could pave the way back to 195.86 high. This will now remain the favored case as long as 155.57 support holds, even in case of deep pull back.

Daily Pivots: (S1) 142.46; (P) 143.36; (R1) 144.77; More....

EUR/JPY retreats mildly but intraday bias stays on the upside. Sustained break of 144.06 long term projection level could bring even further medium term upside acceleration. Next near term target is 100% projection of 124.37 to 139.99 from 132.63 at 148.25. On the downside, below 141.36 minor support will turn intraday bias neutral and bring consolidations first.

In the bigger picture, up trend from 114.42 (2020 low) is in progress. Such rise is seen as the third leg of the pattern from 109.30 (2016 low). Next target will be 100% projection of 114.42 to 134.11 from 124.37 at 144.06. Firm break there will indicate upside acceleration and target 149.76 long term resistance (2014 high). In any case, outlook will now remain bullish as long as 132.63 support holds, in case of deep pull back.

Daily Pivots: (S1) 0.8509; (P) 0.8537; (R1) 0.8577; More...

Intraday bias in EUR/GBP remains neutral and outlook is unchanged. With 0.8365 support intact, further rise is in favor. On the upside, break of 0.8617 will resume rise from 0.8201 medium term bottom to 0.8697 medium term fibonacci level. However, break of 0.8365 will dampen this bullish view, and turn bias back to the downside instead.

In the bigger picture, a medium term bottom could be in place at 0.8201, on bullish convergence condition in daily and weekly MACD. Rise from there could either be a correction to the down trend from 0.9499 (2020 high), or a medium term up trend itself. In either case, further rise should be seen to 38.2% retracement of 0.9499 to 0.8201 at 0.8697. Sustained break there will target 61.8% retracement at 0.9003.

Daily Pivots: (S1) 1.4815; (P) 1.4869; (R1) 1.4955; More...

Intraday bias in EUR/AUD remains neutral for the moment. On the downside, break of 1.4759 minor support will resume the decline from 1.5277 to 1.4597 support. Firm break there should confirm rejection by 1.5354 resistance and bring retest of 1.4138 low. However, on the upside, firm break of 1.4965 minor resistance will turn bias back to the upside for 1.5277 resistance instead.

In the bigger picture, as long as 1.5354 support turned resistance holds, larger down trend from 1.9799 (2020 high) is still expected to continue. On resumption, next target is 61.8% projection of 1.9799 to 1.5250 from 1.6434 at 1.3623, which is close to 1.3624 long term support (2017 low). However, firm break of 1.5354 will indicate medium term bottoming and bring stronger rally back to 1.6434 key resistance.

Daily Pivots: (S1) 1.0429; (P) 1.0460; (R1) 1.0518; More....

Intraday bias in EUR/CHF remains on the upside for 1.0513 resistance. Decisive break there will resume whole rebound from 0.9970, for 1.0610 structural resistance. On the downside, below 1.0398 minor support will turn intraday bias neutral again.

In the bigger picture, as long as 1.0505 support turned resistance (2020 low) holds, long term down trend from 1.2004 (2018 high) is expected to continue. Next target is 100% projection of 1.2004 to 1.0505 to 1.1149 at 0.9650. However, firm break of 1.0505 will suggest medium term bottoming, and bring stronger rebound towards 1.1149 structural resistance.

Daily Pivots: (S1) 1.2529; (P) 1.2547; (R1) 1.2576; More...

Further decline is still expected in USD/CAD with 1.2685 minor resistance. Fall from 1.3075 should target 1.2401 support first. Decisive break of 1.2401 support will argue that whole rebound from 1.2005 has completed, after rejection by 1.3022 fibonacci resistance. Deeper fall would then be seen to retest this low. On the upside, above 1.2685 minor resistance will turn bias back to the upside for stronger recovery.

In the bigger picture, focus stays on 38.2% retracement of 1.4667 (2020 high) to 1.2005 (2021 low) at 1.3022. Sustained break there should confirm that the down trend from 1.4667 has completed after defending 1.2061 long term cluster support. Further rise would then be seen towards 61.8% retracement at 1.3650. However, rejection by 1.3022 will maintain medium term bearishness. Break of 1.2005 will resume the down trend from 1.4667 and that carries larger bearish implications too.

Daily Pivots: (S1) 0.7165; (P) 0.7201; (R1) 0.7226; More...

Intraday bias in AUD/USD remains neutral and outlook is unchanged. Further rise will remain in favor as long as 0.7034 support holds. Current development raised the chance that whole fall corrective fall from 0.8005 has completed at 0.6828. Above 0.7282 will extend the rebound to 0.7660 resistance for confirmation. However, break of 0.7034 will dampen this bullish view and bring retest of 0.6828 low instead.

In the bigger picture, price actions from 0.8006 are seen as a corrective pattern to rise from 0.5506 (2020 low). Deeper fall could be seen to 50% retracement of 0.5506 to 0.8006 at 0.6756. This coincides with 100% projection of 0.8006 to 0.7105 from 0.7660 at 0.6760. Strong support is expected from 0.6756/60 cluster to contain downside to complete the correction. Meanwhile, firm break of 0.7660 resistance will confirm that such corrective pattern has completed, and larger up trend is ready to resume.

Daily Pivots: (S1) 1.0676; (P) 1.0712 (R1) 1.0752; More...

Intraday bias in EUR/USD remains neutral for the moment. On the upside, break of 1.0786 will resume the rebound from 1.0348. Sustained trading above 55 day EMA (now at 1.0745) and 1.0805 support turned resistance will carry larger bullish implication. Intraday bias will be back on the upside for 1.1112 fibonacci resistance. On the downside, break of 1.0626 minor support will indicate rejection by 55 day EMA, and turn bias back to the downside for retesting 1.0348.

In the bigger picture, focus stays on 1.0339 long term support (2017 low). Decisive break there will resume whole down trend from 1.6039 (2008 high). Next target is 61.8% projection of 1.3993 to 1.0339 from 1.2348 at 1.0090. However, firm break of 1.0805 support turned resistance will delay this bearish case. Rise from 1.0348 is at least a correction to the down trend from 1.2348. Stronger rebound would be seen to 38.2% retracement of 1.2348 to 1.0348 at 1.1112.