The negative decline was limited to 1.2097 in the zone after a failed attempt to break the resistance zone at 1.2141. In the early hours of today’s trading, the bulls prevailed and a new test of the above zone is expected at 1.2141. Success here will bolster positive expectations for the future direction of EURUSD and the next target test could easily move to 1.2221. If the bear hits the market again, breaching the 1.2097 support zone could easily pave the way for the 1.2062 rooms.
GBPUSD has been steadily rising towards 1.37 and needs to break above that to further rise towards 1.38/39 in the longer run. Immediate view is bullish but watch price action at 1.37.
The USDJPY moved slightly against the US dollar today after the Bank of Japan (BOJ) made its first rate decision. The bank did not change interest rates – 0.1%, analysts expected. There was no curve control or quantitative easing program in its production. In a statement, the bank downgraded its estimates for economic growth due to the increasing incidence of coronavirus and emergencies in the country. The yen also reacted to mixed numbers from Japan. In December exports fell by 2% while imports fell by 11.6%. This resulted in an increase in trade of over 751 billion yen.
AUD/USD should continue to stabilize at 0.7819 and the intraday bias remains neutral. Further growth is expected at 0.7641 support. On the upside, break of 0.7819 will resume larger up trend from 0.5506 to 61.8% projection of 0.5506 to 0.7413 from 0.6991 at 0.8170.However, a break of 0.7641 means a short-term topping-out ceremony in the event of a 4-hour declining turnaround in the MACD. The intraday bias is shifted to the negative side to correct the depth in the 0.7461 support.
USD/CAD remains on the downside as down trend from 1.4667 is resuming. Next target is 61.8% projection of 1.4667 to 1.2994 from 1.3389 at 1.2355. Near term outlook will remain bearish as long as 1.2798 resistance holds, even in case of recovery.
WTI trade lowers today. We may expect support near 51 to hold respectively while the immediate upside of 55 could be soon tested. Overall the price may remain ranged within the support and immediate resistance mentioned before breaking on either side in the longer run.
XAUUSD has risen well breaking above the interim resistance at 1860 and could test 1880 on the upside. Only a break above 1880 if seen and sustains will make the view bullish for a possible rise towards 1920 or higher in the medium term.
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