US oil reserves are falling, oil prices are rising, Chinese COVID-19 cases decline
January 27, 2021The US Doller getting strong opposite to all majors
January 29, 2021EURUSD
EURUSD remains neutral as it continues to have support at 1.2052. On the other hand, a break at 1.2052 will resume the entire 1.2348 correction. Intraday bias will be turned back to the downside for 61.8% retracement of 1.1602 to 1.2348 at 1.1887. On the upside, though, break of 1.2188 resistance will turn bias back to the upside for retesting.
GBPUSD
GBPUSD has dipped from levels seen yesterday but holds above support at 1.36 just now. A break below 1.36 if seen could make it vulnerable to a sharper decline in the medium term. Watch price action near 1.36.
USDJPY
USDJPY has risen faster than we expected to fall to 103. This is due to yesterday’s rise in the dollar index. While the index is higher in the dollar-yen, there may be room to trade above 104.05 / 20 in the short term. Failure to decline from 104.40/50 could take the pair higher towards 105 in the near term. Watch price action to see a possible dip from 104.40/50.
AUDUSD
AUSUSD has fallen within our expected range of 0.78-0.76 to test the lower end of the range. A bounce from 0.76 would be needed to take it back towards 0.77-0.78 again else we may expect a decline towards 0.75 in the medium term.
USDCAD
USD/CAD remains on the upside at this point. Rebound from 1.2588 short term bottom in in progress for 1.2957/94 resistance zone next. Decisive break there will argue that it’s corrective whole down trend from 1.4667. Further rise would be seen to 1.3389 cluster resistance (38.2% retracement of 1.4667 to 1.2588 at 1.3382). On the downside, break of 1.2684 minor support will argue that the rebound has completed and bring retest of 1.2588 low.
WTI crude oil prices continue to hover just under highs from February 2020. Oil is pressuring the rising trend line from early November. A break under it would expose the 50-day Simple Moving Average(SMA) which may reinstate the focus to the upside in the event of a turn lower. Uptrend resumption would on the other hand place the focus on the January 20th, 2020 high.
XAUUSD
XAUUSD trades below 1840 and now could be headed towards lower support near 1820. Failure to bounce from 1820 could make it vulnerable to test 1800 or lower in the medium term. For now, Gold is bearish towards 1820.
