Euro has support at 1.2160 which has been tested exactly as mentioned yesterday. While the support holds, a bounce back in Euro is expected in the near term back towards 1.22 or higher. Watch price action near current levels for further clarity. A break below 1.2150 could make Euro vulnerable to a sharper fall.
The GBP is trying to bounce from 1.3280 and needs to sustain gradually take the exchange rate higher towards 1.35-1.36. The news about a new variant of Covid-19 is concerning and as we suspect a possible second wave of the pandemic in the United Kingdom; we may expect some volatility in Pound in the near term.
USD/JPY pair edged lower through the Asian session and was last seen hovering near the lower end of its daily trading range, just below mid-103.00s.A combination of negative factors failed to assist the pair to capitalize on the previous day’s positive move, instead prompted some fresh selling on Wednesday. A softer risk tone underpinned the Japanese yen’s safe-haven demand. This, along with the emergence of some fresh selling around the US dollar, exerted some pressure on the USD/JPY pair.
Aussie has bounced a bit from 0.7450 and could trade within the broad 0.7450-0.7650 region for the near term. A bounce towards the upper limit looks possible within the mentioned range.
The USD/CAD broke out to the upside of a short-term descending broadening pattern that began to form in mid-November. The simple moving averages (SMAs) are arranged in a bearish manner, as the 20-day SMA is below the 50-day SMA. The pair will likely continue its counter trend rebound and reach for the 50-day SMA around the 1.3020 resistance level. If price can manage to get above 1.3020, then it could rally towards 1.3145. On the other hand, if price slips then speculators should look to 1.2815 for support. If the pair fails to be supported at 1.2815, it could slip back down to its 52-week low around 1.2700. If price action falls below 1.2700, it would be a bearish signal as it would be a continuation of the long-term downtrend.
WTI has dipped and has not been able to rise past our earlier mentioned resistances near $52-53 on Brent and $48-50 on WTI. While these levels hold as immediate resistances, we may expect a dip in crude prices for the near term.
The price even spiked above $1,900 before it started a downside correction. There is also a major bullish trend line forming with support near $1,855. If there is a downside break below the trend line and $1,850, the price could test the $1,840 support. The 100 simple moving average (4-hours) is also near the $1,840 zone.
If there is a fresh increase, the price is likely to struggle near $1,895 and $1,900. A close above $1,900 could open the doors for a larger increase towards $1,920 and $1,925.
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