Daily technical analysis-Ongoing fears of new lockdowns across Europe

EUR/USD Current level - 1.1794

The depreciation of the common European currency against the dollar came to a halt slightly below the support zone of 1.1773 and, at the time of writing the analysis, the pair is headed towards a test of the resistance level of 1.1805. The short-term forecast is for the pair to enter into a consolidation phase within the range between 1.1773-1.1849 before either the buyers or the sellers take control. A spike in volatility is expected around the announcement of the European Central Bank interest rate decision (11:45 GMT) and during the press conference following the announcement (12:30 GMT).

USD/JPY Current level -  110.14

During yesterday's trading session, the dollar managed to partially recover against the yen, but the test of the resistance level of 110.30 was unsuccessful and the short-term expectations are for the pair to trade in a consolidation phase above the support level of 109.72. The main resistance level remains the aforementioned level of 110.30.

GBP/USD Current level - 1.3703

The pound found support at the level of 1.3570 and stopped depreciating against the dollar. At the time of writing, the pair is found in a corrective phase, which is expected to be limited by the resistance level of 1.3800. The most likely scenario, after the corrective phase ends, is for the pair to retest the support level of 1.3570.

DAX Current level - 15464

The German index continues to recover after the huge sell-off at the start of the week. Yesterday, the DAX30 breached the resistance level of 15358 and, at the time of writing, is headed towards a test of the resistance level of 15464. The expectations are for the index to continue recovering, but considering the ongoing fears of new lockdowns across Europe spurred by the new "Delta” variant of the virus, new sell-offs, as well as increased volatility, are possible.

US30 Current level -  34839

The U.S. blue-chip index is headed towards a test of the resistance level of 34846 and, if the test proves to be successful, it is possible that the psychological level of 35000 will be reached. Similar to the German index, the US30 could face strong sell-offs because of the fears stemming from the new "Delta” variant of COVID-19. During today's trading session, investors' attention will be focused on the initial jobless claims data (12:30 GMT).

Disclaimer

This information has been prepared for information only and does not constitute an offer or commitment. This information does not constitute investment advice as defined by the rules of the FCA.