EUR/USD has turned up from the 50-day MA at 1.1715 yesterday. This is a sign that buyers are strong. Still, the short-term resistance line limits the upside at 1.1870.
EUR/JPY: short-term upside
BUY 126.25; TP1 127.00; TP2 127.30; SL 126.05
EUR/JPY has reached the support line connecting 2018 lows and the lower weekly Bollinger band in the 125.50 area. It’s the natural place for the pair to find some support. The pair formed a bullish engulfing pattern on D1. The short-term recovery may take the euro to 127.00/35. Then the selling pressure will likely return.
USD/JPY is declining for the fifth day in a row. When the pair fell below 105.00, it entered a new, lower range.
The resistance line is limiting USD/JPY on the upside and, unless the pair tries for a breakout (which anyway will meet resistance at 106.50 and 106.80), the easiest path for it will be to go down.
The dollar index was up late Tuesday afternoon in Asia, extending the 0.8% gain in the previous session, when COVID-19 fears and worries over the US Congress’ stimulus impasse drove a selloff across other assets.
Bank of England Governor Andrew Bailey delivered a speech today. Let’s discuss what it means for a trader.
Gold has started a remarkable downside correction and stands on the key 23.6% retracement area after a failure to hold the 38.2% retracement area.