USD is dipping, while oil is rallying up

The US dollar’s weakness offered a boost to emerging-market currencies and oil.

Fundamentals

The 10-year US treasury yields dropped from the highest levels in almost a year. Besides, Fed authorities rejected speculation that they could cut asset purchases soon. The USD closed in red yesterday and continues falling today.
Oil is rallying upwards! WTI oil approached the high of February 20 at $54.00, while Brent oil hit $57.00 heading towards $60.00. It happened after Saudi Arabia announced its plans to cut oil supply by an additional 1 million barrels per day in upcoming months.
The vaccines’ rollout and Biden’s pledge to unveil additional fiscal support in the US improved the market sentiment and bolstered bets on soon economic recovery.
The GBP rose after Bank of England’s Governor Andrew Baileydenied expectations of negative rates.
Gold remains at familiar levels near $1 850-1 860.

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Technical levels

EUR/USD retreated on USD’s softness. Now it’s heading towards the 100-period moving average of 1.2240. If it manages to break through the resistance zone of 1.2240-1.2250, the way up to the high of January 8 at 1.2270 will be open. Support levels are 1.2200 and 1.2140.

GBP/USD has pulled back from the resistance of 1.3700. If it manages to finally break it, the way up to the next round number of 1.3750 will be open. In the opposite scenario, the move below the 50-period MA will push the pair to the 100-MA at 1.3540.

USD/JPY was falling but stopped ahead of the support at 103.50. The breakout of this level will drive the pair down to the key psychological mark of 103.00. Resistance levels are the high of January 8 at 103.90 and Monday’s high of 104.30.

USD/CAD is moving down as the Canadian dollar gained on rising oil prices. The move below the low of January 6 at 1.2650 will drive the pair to the psychological mark of 1.2600. Resistance levels are at the recent highs of 1.2780 and 1.2830.