The US Doller getting strong opposite to all majors
January 29, 2021The USDCAD fell to 1.2850 during the early Asian session on Tuesday.
February 2, 2021EURUSD
The EUR/USD started a new uptrend and climbed above 1.2100, but faces hurdles. It started a fair rebound and cleared the 1.2120 resistance. There was also a break from the 50 Fib retracement level which dropped from the highest 1.2189 to the lowest 1.2059. However, the pair appears to be facing a number of significant hurdles starting with 1.2160 and a connecting bearish trend line. The next big resistance is almost 1.2200 or 200 normal moving average (4 hours). Beyond the trend line, resistance and 1.2200 may open the door for a reasonable rise in the coming sessions. In contrast, EURUSD cannot continue above 1.2160 or 1.2200.There is a risk of a further decline towards the 1.2060 support zone.
The GBPUSD has support at 1.36 and while that holds the currency could remain within 1.36-1.3750/1.38 for the near term. Note that 1.3750-1.38 is an immediate resistance and while that holds, Pound could range in a narrow 1.36-1.38 for the near term.
USDJPY
The USDJPY pair is only bullish while trading above the 104.30 level, key resistance is found at the 105.00 and 105.50 levels. The USDJPY pair is only bearish while trading below the 104.30 level, key support is found at the 104.10 and 103.80 levels.
AUDUSD
The AUDUSD has dipped sharply towards 0.76 but needs to break below 0.76 in order to head lower towards 0.7550-0.75 in the medium term before seeing a bounce from there in the longer run. Else if AUDUSD holds above 0.76 immediately, we may expect a rise towards 0.77 or higher from current levels itself. Wait and watch price action near 0.76.
USDCAD
USD/CAD remains neutral first. Rebound from 1.2588 short term bottom is expected to extend higher as long as 1.2684 minor support holds. Break of 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 WTI markets continue to Consolidate for the third week. Price action continues to trade nearly flat for three weekly sessions so far. As a result, price increases are firmly anchored in the sideline between 53.77 and 51.87. The flat trade stems from concerns about vaccine rollouts that could potentially slow the global economic recovery. . The 51.87 level price action is repeatedly tested, which is still maintained. However, a break below this level could potentially deliver a short-term correction on the horizon. We maintain that the down target has stayed close to the 49.00 handle.
The precious metal tested 1880 on the upside on Friday before falling from there. Immediate range of 1880-1820 seems to be holding well for now and an eventual rise towards 1900 and higher looks more likely in the medium term. Only a break below 1820, if seen would make Gold vulnerable to a sharp fall targeting 1780-1740. While above 1820, view is bullish.
