The EUR/USD currency pair
- Prev Open: 1.0865
- Prev Close: 1.0870
- % chg. over the last day: +0.05 %
According to the latest Federal Reserve CME data, the US Federal Reserve will raise interest rates by 25 basis points at the FOMC meeting on February 1 and another 25 basis points at the next meeting in March. The US central bank will then hold rates until the fourth quarter. A slowdown in the pace of monetary tightening in the coming weeks has a negative impact on the dollar index. The US will have two important reports this week: the first, the US GDP report for the fourth quarter on Thursday, and then the Core PCE on Friday. These two releases will drive the dollar index in the short term.
- Support levels: 1.0846, 1.0801, 1.0781, 1.0710, 1.0650, 1.0597, 1.0535, 1.0497, 1.0480
- Resistance levels: 1.0886, 1.0926
The trend on the EUR/USD currency pair on the hourly time frame is still bullish. Yesterday, the price formed a false-breakout zone, which will now act as a growth constraint. The MACD indicator has become inactive, with signs of divergence persisting. During the day, there is a slight buying pressure, but it is decreasing. Under such market conditions, buy trades are best considered from the support level of 1.0846 with confirmation in the form of a false breakdown on intraday time frames. Sell deals can be considered from the resistance level of 1.0886, but better with a confirmation in the form of a reverse initiative.
Alternative scenario: if the price breaks down through the support level of 1.0710 and fixes below it, the downtrend will likely resume.
- – French Manufacturing PMI (m/m) at 10:15 (GMT+2);
- – French Services PMI (m/m) at 10:15 (GMT+2);
- – Germany Manufacturing PMI (m/m) at 10:30 (GMT+2);
- – Germany Services PMI (m/m) at 10:30 (GMT+2);
- – Eurozone Manufacturing PMI (m/m) at 11:00 (GMT+2);
- – Eurozone Services PMI (m/m) at 11:00 (GMT+2);
- – Eurozone ECB President Lagarde Speaks at 11:45 (GMT+2);
- – US Manufacturing PMI (m/m) at 16:45 (GMT+2);
- – US Services PMI (m/m) at 16:45 (GMT+2).
The GBP/USD currency pair
- Prev Open: 1.2399
- Prev Close: 1.2377
- % chg. over the last day: -0.18 %
The situation in the UK economy remains tense. But on the horizon, there is a warming of relations between the UK and the EU because of the NI protocol. If a compromise can be found between the two sides, it should boost both the euro and the British pound. Today there will be a report on business activity in the manufacturing and services sectors. This data will shed light on how businesses perform in the face of high inflation and rising rates.
- Support levels: 1.2300, 1.2220, 1.2080, 1.2000, 1.1928, 1.1875, 1.1684
- Resistance levels: 1.2404, 1.2446, 1.2519
From the technical point of view, the GBP/USD currency pair trend on the hourly time frame is bullish. The price is trading above the levels of the moving averages. The MACD indicator has become inactive. At the same time, the presence of divergence and the presence of the daily resistance limits further growth of quotes. Under such market conditions, it is better to look for buy trades on intraday time frames from the support level of 1.2300, but with confirmation. Sell trades are best sought from the resistance level of 1.2404, but it is also better with confirmation in the form of a reverse initiative.
Alternative scenario: if the price breaks down through the 1.2219 support level and fixes above it, the downtrend will likely resume.
- – UK Manufacturing PMI (m/m) at 11:30 (GMT+2);
- – UK Services PMI (m/m) at 11:30 (GMT+2).
The USD/JPY currency pair
- Prev Open: 128.43
- Prev Close: 130.67
- % chg. over the last day: +1.74 %
Japanese Prime Minister Fumio Kishida said he would push for labor market reforms to create the conditions for sustainable wage increases. Another key issue at the parliamentary session will be pushing for Japan's biggest increase in defense spending. At the same time, Kishida indicated that he would not hesitate to take the necessary steps to fight inflation. It will be extremely difficult for the Bank of Japan to stick to a soft monetary policy this year.
- Support levels: 129.04, 128.16, 127.53, 126.19
- Resistance levels: 130.61, 131.58, 132.37, 132.95, 133.23, 134.45, 135.88
From the technical point of view, the medium-term trend on the currency pair USD/JPY is still bearish. The price is trading at the levels of the moving averages. The MACD indicator is in the positive zone, but there is less pressure from the buyers. It is better to look for buy trades from the support level of 129.04, but only with a confirmation in the form of a false breakdown. Sell deals can be searched for from the resistance level of 130.61, provided that the reaction is reversed.
Alternative scenario: If the price fixes above the resistance level of 131.34, the uptrend will be renewed with a high probability.
- – Japan Manufacturing PMI (m/m) at 02:30 (GMT+2);
- – Japan Services PMI (m/m) at 02:30 (GMT+2).
The USD/CAD currency pair
- Prev Open: 1.3380
- Prev Close: 1.3366
- % chg. over the last day: -0.10 %
The Canadian housing market is under real pressure due to rising mortgage rates. Highly indebted households tend to feel the effects of higher borrowing costs, and consumer spending will be hit hard this year. The likelihood of a recession is increasing, so the Bank of Canada will lower the pace of rate hikes this week, as will the US Federal Reserve. Analysts are confident that the Bank of Canada will start thinking about cutting interest rates from the end of the third quarter.
- Support levels: 1.3351, 1.3212
- Resistance levels: 1.3445, 1.3496, 1.3520, 1.3554, 1.3595, 1.3632
From the point of view of technical analysis, the trend on the USD/CAD currency pair is bearish. The MACD indicator is in the negative zone, sellers dominate within the day, but the divergence is increasing. Yesterday, the price formed a false breakdown zone, which will now act as a support zone. Under such market conditions, sell trades can be considered from the resistance level of 1.3445, but with additional confirmation in the form of reverse initiative or change of the structure on the lower time frames. But deals should be considered from the support level of 1.3351, but only with short targets.
Alternative scenario: if the price breaks out and consolidates above the resistance level of 1.3513, the uptrend will likely resume.
by , 2023.01.24
We recommend you to get acquainted with the daily overview of the news feed.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