The EUR/USD currency pair
- Prev Open: 1.1315
- Prev Close: 1.1310
- % chg. over the last day: -0.04%
Geopolitics came to the fore again. After the news from Russia, the dollar index began to strengthen. European countries will begin to impose sanctions against Russia, which will also lead to Europe's suffering because Europe, against the background of the energy crisis, is very dependent on Russian gas and oil supplies.
- Support levels: 1.1283, 1.1247
- Resistance levels: 1.1335, 1.1392, 1.1423, 1.1481, 1.1534
From the technical point of view, the EUR/USD on the hourly time frame is bearish. Selling pressure intensified as investors started buying US dollars. Under such market conditions, it is best to look for sell trades on intraday time frames from the resistance level of 1.1335. Buy trades should be considered from the support level of 1.1247, but only with additional confirmation.
Alternative scenario: if the price breaks out through the 1.1423 resistance level and fixes above, the mid-term uptrend will likely resume.
- – Eurozone Germany Ifo Business Climate (m/m) at 11:00 (GMT+2);
- – US Manufacturing PMI (m/m) at 16:45 (GMT+2);
- – US Services PMI (m/m) at 16:45 (GMT+2);
- – US CB Consumer Confidence (m/m) at 17:00 (GMT+2).
The GBP/USD currency pair
- Prev Open: 1.3583
- Prev Close: 1.3599
- % chg. over the last day: +0.12%
As expected, the Manufacturing and Services PMI showed improvement in January as the UK lifted all coronavirus-related restrictions last month. Also, it should be noted that the British pound is now more stable than the euro due to the tightening of the central bank of England.
- Support levels: 1.3572, 1.3549, 1.3506, 1.3475, 1.3457
- Resistance levels: 1.3639, 1.3662
On the hourly time frame, the GBP/USD currency pair trend is still bullish. The price is trading in a wide corridor with boundaries of 1.3572-1.3639. Under such market conditions, buy trades should be looked at from the lower boundary of 1.3572, but with confirmation. A resistance level of 1.3639 may be considered for opening sell deals, but only with additional confirmation in the form of sellers' initiative.
Alternative scenario: if the price breaks out through the 1.3549 support level and consolidates below, the bullish scenario will be broken.
The USD/JPY currency pair
- Prev Open: 115.00
- Prev Close: 114.72
- % chg. over the last day: -0.24%
The geopolitical situation in Eastern Europe is forcing investors to switch to defensive assets, including the Japanese yen. The policy of the central banks has faded into the background. The Japanese yen will continue to strengthen until Ukraine's borders stabilize.
- Support levels: 114.44, 113.99
- Resistance levels: 114.75, 115.43, 115.64, 116.12, 116.50
The global trend on the USD/JPY currency pair is bullish. The price broke through the priority change level and consolidated below. Under such market conditions, it is best to look for buy deals on the lower time frames from the support level of 114.44, but with additional confirmation. There is no optimal entry point for sell deals now, as the MACD signals a divergence towards buying.
Alternative scenario: if the price fixes above 115.64, the uptrend will likely resume.
The USD/CAD currency pair
- Prev Open: 1.2743
- Prev Close: 1.2752
- % chg. over the last day: +0.07%
The Canadian dollar is a commodity currency, so it depends not only on the monetary policy of the Bank of Canada but also on the oil prices and the dollar index. The fundamental picture now is that both the dollar index and oil prices will rise. Investors are buying the dollar index as a defensive asset, and next month the Fed will begin to tighten its monetary policy, which will also support the US currency. Oil prices are likely to rise to $100 a barrel amid upcoming sanctions against Russia, the world's largest oil supplier. Oil prices can only go down if the sanctions on Iran are lifted.
- Support levels: 1.2718, 1.2680, 1.2600, 1.2506
- Resistance levels: 1.2794
From a technical point of view, the USD/CAD currency pair is bullish. The price is in a wide flat with high volatility. It is worth trading only with short targets, as both oil and the dollar index are inclined to grow now. Under such market conditions, it is better to look for buy trades on the lower time frames from the support level of 1.2718. For sell deals, it is better to consider the resistance level of 1.2794, but with an additional confirmation in the form of an initiative of sellers.
Alternative scenario: if the price breaks through the 1.2680 support level and fixes below, the downtrend will likely resume.
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This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.Open Account