The US dollar appeared to be the overall winner on Tuesday. Sellers pushed away from 1.2350 and advanced down to 1.2250. However, the euro faced buying rejection at the level. As a result, the spot bounced off lows and recovered towards 1.2300 in the European session on Wednesday. The resistance resides at 1.2300, the support comes in at 1.2250.
The downward pressure partially eased in the night. However, the overall picture remained the same. The spot is under heavy pressure and may probe the 1.2200 area now.
GBP/USD is still in a buy mode. The sterling found fresh bids at 1.4000 and rebounded towards 1.4100 in the morning on Wednesday. The resistance lies at 1.4100, the support comes in at 1.4000.
The technical structure suggests further upside pressure. If the pound breaks through the 1.4100 resistance area, it will have room extend its incline to 1.4200.
The USD/JPY pair is still bearish. The US dollar recovery move stalled at 106.50 where a buying momentum around the US currency weakened and the spot declined to 106.30. The resistance lies at 107.00, the support comes in at 106.00.
We assume that the USD/JPY pair will extend its downward impulse and will revisit the area 105.50 in the coming sessions.
The pound strengthened versus the yen up to the 149.00 region where the major lost impetus. The pair started a consolidation phase around its fresh highs after that. The resistance lies at 150.00, the support is at 149.00.
Despite the yen's weakness the pound is unlikely to continue its growth. A fresh decline will start as soon, as the pair moves away the level 149.00.
The bearish trend remained intact on Wednesday. The pair is neutral after the Tuesday's sell-off. Sellers are holding the spot at the 130.50 handle. The resistance lies at 131.00, the support is at 130.50.
We believe that the downward pressure will persist and view the likelihood of a test of the 129.50 zone.
The US dollar remained on the back foot on Wednesday. The NZD/USD pair continued to ease lower during the day trades and approached the level 0.7150 in the late European session. The resistance is at 0.7200, the support stands 0.7150.
This pair is undervalued, however, the NZD still has “room to extend lower” to 0.7100
The recovery from the level 12200 stalled at 12300 in the Asian session. The EMA100 limited DAX’s further recovery. The resistance lies at 12300, the support exists at 12200.
DAX is still vulnerable and is prone to show further weakness. We are waiting for a continuation of a fall with a further target at 12100.
NASDAQ failed to sustain the Asian recovery. The index eased off its session highs in the morning and declined to 6860. The resistance lies at 6910, the support exists in at 6860.
As long as market holding below 6960 the downtrend pressure will continue toward 6810 and 6760.
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