The EURUS has been entering a narrow range since European trading hours in early Wednesday. While the upside has been piled around 1.2150, the bears have failed to push the pair below 1.2110. Breakouts / breakdowns from the new found range will open the door to a bullish/bearish move at least 40 pips. It is possible that the limit breakout is visible as the MACD histogram has been accelerating since December. In addition, the 40-pp looks like a continuation pattern when viewed in the background of the break above the downward trend connecting Tuesday, January 6 and January 29.
The GBPUSD Support is seen in the range 1.3800 with breakout focus at the level 1.3750. Further down, support at 1.3700 level. . A cut through here will turn focus to the 1.3650 level and then the 1.3600 level. Conversely, resistance is seen at 1.3850 with a break from this level, giving a greater advantage over the 1.3900 level. Further, the resistance stands at 1.3950 level followed by 1.4000 level. Overall, GBPUSD faces further upside pressure in the short term
The USDJPY broke support at 105.00, but it is still above key support at 104.40. The pair also traded below the 50 Fab retracement level for the upward movement, falling from 103.55 to 105.6. However, the pair found strong support near the 104.40 level and 100 simple moving averages. If the pair remains stable above 104.00, a new uptrend may begin. A large resistance is formed near the level 105.10. There is also a fishing line near 105.10. A clear break above the 105.10 level could open the door for a steady rise in the short term.
The AUDUSD further rise is in favor with 0.7681 minor support intact. Firm break of 0.7819 resistance will resume larger up trend from 0.5506. Next near term target is 61.8% projection of 0.6991 to 0.7819 from 0.7563 at 0.8075. On the downside, break of 0.7681 minor support will delay the bullish case and extend the correction from 0.7819 with another fall.
The USDCAD dipped to 1.2659 but couldn’t stay below 1.2684 support and recovered. Intraday bias stays neutral first. On the downside, break of 1.2659 will argue that rebound from 1.2588 has completed at 1.2880. Intraday bias will be turned back to the downside for retesting 1.2588 low. On the upside, break of 1.2781 minor resistance will revive near term bullishness. Intraday bias will be turned back to the upside for 1.2880 and above, to resume the rebound from 1.2588.
The crude oil has dipped after seeing a rise yesterday boosted by the lower US crude inventory levels. The crude prices now could stabilize or see a corrective dip from immediate resistances of 60 respectively. A fall towards 57-56 looks likely in the near term.
The Precious metal has come down from levels near 1840/50 and while it manages to sustain below 1820, we may expect a dip towards 1800-1780 again in the near term.
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