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CURRENCIES TECHNICAL ANALYSIS January.31

Euro

 

EUR/USD found a strong support at 1.2350. Sellers failed to regain this level and retreated. The pair reverted its fresh losses after this and rebounded to 1.2450. The resistance resides at 1.2450, the support comes in at 1.2400.

 

The buying momentum lost steam. If the market sentiment turns negative sellers could push the pair towards 1.2300.

 

Pound

 

The GBP/USD pair retraced a portion of its recent losses on Tuesday. The GBP/USD pair rebounded from the 1.4000 handle and moved to the 1.4150 area where the upward momentum lost legs. The level rejected the sterling downwards which softened to the 1.4100 handle during the European hours on Wednesday. The resistance lies at 1.4200, the support comes in at 1.4100.

 

If sellers regain control it would be no surprise for us to see the pair probe the 1.4000 region again.

 

USD/JPY

 

The USD/JPY remained under pressure on Wednesday. The spot is in a narrow range between 109.00 and 108.50 now. The price keeps moving back and forth between the mentioned levels. The resistance lies at 109.00, the support comes in at 108.00.

 

The pair seems poised to extend its consolidation. The price is likely to stay in the current range in the coming sessions.

 

GBP/JPY  

 

The GBP/JPY pair broke the EMA200, touched the level 152.00 after that and rebounded from the level afterwards. The price jumped to 154.00 where the EMA50 blocked the pound recovery. The spot spent the night at the level and started the European session on the defensive. Buyers retreated allowing sellers to push the pound lower. The resistance lies at 154.00, the support is at 153.00.

 

The currency pair just tested the lower limit of the buying channel. If the price stays above 154.00, GBP/JPY may develop a recovery towards 155.00. If the spot returns below 153.00 the sterling may decline to 152.00 in the coming days.

 

EUR/JPY

 

EUR/JPY found a strong support at 134.00. Sellers surrendered the majority of its early strong gains and retreated from the handle after that. The pair recovered up to 135.50 where the EMA50 blocked the further pair's recovery. The resistance lies at 135.50, the support is at 135.00.

 

Inability to reclaim the 135.50 hurdle may help sellers to return control over the market. In this potential scenario bears could decline the price to 134.50.

 

USD/CAD

 

Sellers returned control on Wednesday. The US dollar faced further downside pressure in the early Asian session. Sellers led the pair out of the sideways range and headed towards 1.2250. The resistance is at 1.2300, the support stands 1.2250.

 

If the offered tone around the US currency remains intact the spot will continues suffering the persistent weakness. Sellers could lead the pair to 1.2200 in this case.

 

DAX

 

DAX failed to build a recovery and turned bearish soon after opening on Wednesday. Sellers returned the price to the 13200 support and pressured the level after that.  The resistance lies at 13300, the support exists at 13200.

 

If the selling pressure increases the DAX index will reclaim the 13200 support and will decline towards 13100.

 

S&P500

 

S&P500 extended its negative trajectory and left the upward channel on Tuesday. Sellers pushed the index towards 2830 where they faced buying rejection. As a result, the benchmark rebounded to 2840. The resistance lies at 2850, the support exists in at 2830.

 

If the bearish tone persists we expect a breakout of the level 2830 and a decline to 2810.

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