Dollar Up, Hopes Also Up on U.S. COVID-19 Recovery
February 3, 2021Dollar Edges Lower, Consolidating After Week’s Gains
February 5, 2021EURUSD
The EURUSD is falling from the third day in a row since the start of the week, fixing lows, indicating significant selling interest. However, the psychological threshold of 1.2000 scares the bear. The bearish trend continues as in the 4 hours chart the 20 SMA has exacerbated its decline and reversed from the 1.2060 Fibonacci level. Technical indicators bounced off an intraday low, but after losing strength, remain within negative levels.
GBPUSD
The GBPUSD is trading near 1.3650 against the US dollar as the pair stabilizes ahead of the Bank of England’s policy meeting. Technical analysis suggests that GBPUSD could move towards the 1.3550 level. Another hawkish tone from the Bank of England could lead to a rally towards the 1.3770 resistance area. GBPUSD is bullish only when trading above 1.3650, with key resistance at 1.3710 and 1.3770. If GBPUSD is trading below 1.3650, sellers may test the 1.3600 and 1.3550 support levels.
USDJPY
The USD/JPY trades above 105 and needs to hold below 105.20 to see a corrective dip towards 104.75/50 before further rally is seen. Failure to dip from 105.20 could take the pair higher towards 105.50-105.75 in the near term. Watch price action near 105.20 just now.
AUDUSD
AUD / USD even broke the 0.7650 support level to move into a bearish zone in the near term. A low was formed at 0.7563 before the AUD / USD started an upward correction. There was a break above the 0.7600 resistance. The pair even climbed above the 50% Fib retracement level from the recent drop from the 0.7704 high to 0.7563 low. On the upside, the pair is facing strong resistance at 0.7660 and the 200 simple moving average (4 hours). A major bearish trend line is also forming with resistance near 0.7670 on the same chart. If there is a clear break above the trend line, the pair could move towards the next key resistance near the 0.7700 level and 100 simple moving average . If there is no upside break, the pair could fall towards the 0.7560 and 0.7550 support levels in the short term.
USDCAD
The USD/CAD is staying in consolidation from 1.2880 temporary top and intraday bias remains neutral for the moment. Rebound from 1.2588 is still expected to continue. On the upside, above 1.2880 will target 1.2994 support turned resistance. However, break of 1.2684 minor support will argue that the rebound has completed and bring retest of 1.2588 low.
WTI
The crude oil trade higher today and look bullish for the near term. A short corrective fall may be expected. while the resistance near 55 on the WTI has been broken and a gradual rally towards 65 looks more likely. Crude prices are bullish from current levels. Overall trend looks bullish.
XAUUSD
The precious metal has returned to support around 1820 and that holds we keep intact a range of 1820-1880 for the near term. On the 3-day and weekly charts, a break below 1820 seems more likely in the short term in preparation for a drop to 1800-1760. For now, see price action around 1820-1800.