The EUR/USD bullish sentiment remains intact. The expectations are for the currency pair to head for another test of the critical resistance at 1.2174, which, if successful, would pave the way towards 1.2240. As long as EUR/USD keeps trading above the support zone at 1.2082, a deeper sell-off is very unlikely, but in case it occurs, it would be limited by the support at 1.1988.
GBP/USD drop was stopped by the support at 1.3291, which, together with potential positive news coming from the EU/UK Brexit talks and the start of the mass vaccination process in the UK, could boost the pair and set it up for an attack of the resistance at 1.3390, followed by another test of 1.3500. In the negative direction, the first support is the aforementioned level of 1.3291.
USD/JPY pair is remains neutral first. We’re holding on to the view that larger decline from 111.71 is still in progress. Break of 103.65 should turn bias back to the downside for 103.17 low and below. This bearish case will remain favored as long as 105.67 resistance holds.
The AUD/USD slipped 14 pips making it one of the worst performing pairs among the majors on Tuesday. The pair broke above a bullish falling wedge continuation pattern with key resistance at 0.742 briefly before pulling back slightly towards its 20-day moving average. The uptrend remains in play. Look for the 20-day moving average to maintain support in the trend towards the next key resistance levels of 0.75 and 0.765 in extension. An ideal overlap support can be seen at the 0.7235 level.
USD/CAD continues to show downside momentum. Upside of recovery should be limited by 1.2928 support turned resistance and bring another fall. On the downside, break of 1.2768 will target 100% projection of 1.3389 to 1.2928 from 1.3172 at 1.2711 next. Break will target 161.8% projection at 1.2426.
WTI is trading in a sideways manner around the 10-day Simple Moving Average (SMA) of $45.50, having traded back and forth in the range of $45.14 to $45.93 on Tuesday, forming an indecisive Doji candle on the daily Candle .The immediate bias would remain neutral while prices are held in Tuesday’s trading range.
Gold price gained bullish momentum above the $1,800 resistance to move into a positive zone. The price moved steadily and climbed above the 50% Fib retracement level of the last major decline from the $1,965 high to $1,764 swing low. There was a close above the $1,850 level and the 100 simple moving average (4-hours).
If there are more upsides above $1,875 level and the 200 simple moving average (4-hours), the price could accelerate higher towards $1,888 and $1,895.Conversely, there could be a short-term downside correction below $1,860. However, the recent breakout zone at $1,850 and $1,840 could provide support.
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