The sentiment remains negative as the pair
is expected to go for yet another test of the key support at 1.1068. A
possible breakthrough at this level would pave the way towards the next
key support at 1.0980. Higher volatility is expected around 12:45 GMT
time when the ECB interest rate decision is to be announced and during
Lagard’s press conference (13:30 GMT).
The currency pair managed to break the
support zone around 109.60-109.65, but at the time of writing, the
price is just below that level and the breakthrough is still to be
confirmed. If the price stays below the aforementioned level, then the
expectations would be for a prolonged correction phase and a test of
the next support at 109.20. In the opposite direction, the first
resistance lies at 110.20.
The pair continues its upward movement
which started at the beginning of the week, and consequently breached
above the resistance levels at 1.3080 and 1.3125. If the price holds
above 1.3125, the bullish momentum would remain intact and a test of
1.3200 would be the most likely scenario. If the pair fails to hold
above 1.3125, a retracement towards the support at 1.3060 could occur.
The correction for the German index was
stopped by the support at 13450, but another test at this level is
still possible. If the aforementioned level holds again, the upward
movement towards new record highs will be renewed. In case of a deeper
correction, the next support level lies at 13380.
The correction for the US blue chip index
continues, but until the price holds above 29050, the bulls will stay
in control and the expectations for new highs will remain intact. The
first resistance level lays at 29390.
Where will the market go?
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