The EURUSD is expected to trade in the 1.2130 to 1.2205 range. Before it bounced sharply, however, it stayed at 1.2109 and the day ended at 1.2156 (-0.01%). Downward momentum has improved a tad and the bias is tilted to the downside. However, any weakness should be limited to testing the 1.2110 level. The next aid from 1.2080 should not be threatened. Conversely, an interval of 1.2190 would indicate a slight decrease in current downward pressure (a slight resistance is at 1.2170).
GBP/USD remains neutral at this point. On the upside, decisive break of 1.3702 will resume whole rise from 1.1409. Intraday bias will be turned back to the upside for 61.8% projection of 1.1409 to 1.3482 from 1.2675 at 1.3956. For now, outlook will stay bullish as long as 1.3428 support holds, even in case of another retreat.
USD / JPY broke a large resistance at 103.50 to enter a positive zone. A negative was recently corrected below 104.00 but the pair stayed above the 103.50 support. The pair is showing positive signs but must move above 10 104.40 to proceed. The next big resistance is near the 105.00 level. If the deficit corrects, the 103.50 level could offer support. A sharp break below the 103.50 level could potentially move the pair into the 103.00 support zone. Overall, USD / JPY is showing positive signs and could continue to rise if cleared 104.40.
AUD / USD should continue to stabilize at 0.7819 and the intraday bias will remain neutral for now. . On the upside, break of 0.7819 will resume larger up trend from 0.5506 to 61.8% projection of 0.7413 from 0.6991 at 0.8170. On the other hand, the 0.7641 support interval indicates a short-term topping. Intraday bias will be turned back to the downside for deeper correction to 0.7461 support first.
The USD/CAD seems to be slightly ahead of the DXY sell-off in height, as the pair started moving lowers about 45 minutes ago. However, USD/CAD has been in a downward sloping channel since late October 2020 and continues to push lower. After a false breakout above the top of the channel on January 11th to the 61.8% Fibonacci retracement level from the December 21st, 2020 highs to the January 6th lows, the pair continued lower and is currently tested the January 6th lows near 1.2634. A break lower would suggest a move down to trend line support (red line) near 1.2605. Below there, USD/CAD has room to run to the bottom line of the channel near 1.2400! Resistance above is at today’s highs near 1.2700, where bears will be looking to reenter shorts.
Crude oil, is trading around $ 53.70 at press time, up 0.22% on the day. After hitting a $52.24 high on Thursday prices almost tested Wednesday’s high of $53.93 a couple of hours ago before pulling back slightly. Another rejection near 54.00 would mean that fatigue is increasing and sales (or profiteers) are started on some charts, which would increase the price. Thursday’s low of $52.24 is the immediate support, followed by $50.00. The Relative Strength Index (RSI) on the 4-hour chart suggests a pullback. As long as prices are held above the previous barrier support of 49.43 (December 18th high) the overall trend will remain strong. The key resistance is at 54.66 (February 20th high).
The gold price has stabilized after last week’s strong sell-off. The precious metal fell nearly 7% from its annual high of $1,963 undoing its breakout above $ 1,900. Rising government bond yields and the strength of the US dollar were the main drivers of the recent gold volatility.
Legal: CF Merchants is the trading name of Commodity and Forex Merchants registered and regulated in many Jurisdictions. CF Merchants Limited is regulated with license number 24535/2018, at Suite 305, Griffith Corporate Center, P. O. Box 1510, Beachmont, Kingstown, Saint Vincent and the Grenadines as an International Broker Company under the company act of Saint Vincent & the Grenadines. The objects of the Company are all subject matters not forbidden by International Business Companies (Amendments and Consolidation) Act, Chapter 149 of the Revised Laws of Saint Vincent and Grenadines 2009, in particular but not exclusively all commercial, financial, lending, borrowing, trading, service activities and the participation in other enterprises as well to provide brokerage, training and managed account services in currencies, commodities, indexes and leveraged financial instruments.
Commodity and Forex Merchants Limited is authorized under license number 1092420 by the Companies House, Cardiff, United Kingdom on 21st August 2017.
High Risk Investment Warning: Margin FX are leveraged products that carry an extraordinary level of risk to your funds. Trading is not suitable for everyone and may result in you losing significantly more than your investments and therefore, you should not speculate with capital that you cannot afford to lose. You should consider whether you understand how this work and whether you can afford to take the high risk of losing your money. All the trading related information on this website is general in nature and does not take into account your or your client’s personal intentions, financial conditions and needs. We encourage you to seek independent advice if necessary. It is the responsibility of the client to ascertain whether he/she is allowed to use the services of the CF Merchants based on the legal requirements in his/her country of residence. Please read full Risk Disclaimer for more details.
Regional Restrictions: CF Merchants (SV) Ltd does not provide services and accept applications from the residents of certain countries, such as United States of America, Canada, Israel, North Korea and Saint Vincent & The Grenadines. The statistics on this website is not directed at residents in any country or jurisdiction where such distribution or use would be contradictory to local law or regulation.