EUR/USD gained around 67 pips in Thursday’s trading making it the top performing pair against the majors. The pair looks to be back in a well-established uptrend after breaking above a consolidation zone in place since August. Key resistance at the 1.2265 level has been broken to the upside. The next major target resistance levels are 1.2415 and 1.2535 in extension. A break below the 20-day moving average would be a bearish warning signal. Key support can be seen at the breakout level of 1.202.
The GBPUSD was halted at the 1.3618 resistance level, while the follow-up corrective phase will most likely be limited to the level of the first support at 1.3500. The sentiment remains positive, for another test of the resistance zone. On the other hand, a negative scenario for the pound cannot be yet ruled out, should the negotiations between the EU and the United Kingdom take a turn for the worse.
The USDJPY continued to appreciate against the retreating U.S. dollar, reaching levels of 102.85 during the last trading session. However, the breach of the support at 103.00 was not confirmed due to the subsequent corrective move, which would most likely be limited to the resistance level of 103.72. Negative sentiments remain intact, with the most likely scenario being a move towards the support level at the not-so-distant level of around 101.00.
AUDUSD fell from levels near 0.7638 yesterday despite the rally seen in commodities. The sharp rise expected in Copper, if seen could be bullish for Aussie also in the near term taking it higher towards 0.77 on the upside.
USD/CAD is staying in consolidation from 1.2668 temporary low and intraday bias remains neutral. In case of another recovery, upside should be limited by 1.2928 support turned resistance. On the downside, break of 1.2688 will resume recent down trend for 161.8% projection of 1.3389 to 1.2928 from 1.3172 at 1.2426.
WTI crude oil prices continue to climb after the bullish implications of a ‘Golden Cross’ from November. Prices are on the cusp of the early February inflection point at 49.42. A push above this price exposes the February peak at 54.45. Keeping the upside momentum could be the moving averages pointed out on the daily chart below.
Gold has moved up significantly and could soon be headed towards 1900-1920 on the upside before a corrective decline is seen again in the longer run. Immediate view is bullish.
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