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.
GBP/USD: pound stays on the shelf
TP1 1.3200 TP2 1.3300 TP3 1.3550
On the daily chart, bulls are trying to bring GBP/USD outside of the 1.2785-1.3050 consolidation range. It was formed in line with a “Spike and ledge”. If a break of resistance at 1.3050 is a success, the odds of the pair reaching 161.8% target of AB=CD will increase.
On H1, bulls aim to bring GBP/USD outside of the downtrend channel. If they push the prices above September high at 1.3085, it will open the way for an advance to 161.8% of AB=CD and “Crab”.
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.