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FX BAZOOKA: technicals (Jan. 22)





EUR/USD formed another hammer around the 4-month support line and tested Kijun-sen (blue line) in the $1.3580 area reaching a 3-day high. Still there is much of the resistance ahead. MACD’s rising, RSI’s neutral. In the lack of data we may expect sideways trading today. Market participants would wait for advanced manufacturing/services PMIs due tomorrow to have a better idea of the direction of the pair in the near term.

Resistance: $1.3580, $1.3609, $1.3630

Support: $1.3525, $1.3500, $1.3465

Chart. H4 EUR/USD

Upcoming events

EUR – Spanish Trade Balance

USD - 12:00 GMT - MBA Mortgage Applications


Cable is trading in a sideways $1.6490/6460 range on Wednesday. The market sentiment is bullish. Pound is waiting for the important UK data at 9:30 GMT. Yesterday the pair rose above the 2-week resistance ($1.6450). MACD histogram is rising in the positive zone.

Resistance: $1.6490, $1.6500, $1.6520

Support: $1.6460, $1.6430, $1.6410, $1.6390


Chart. H4 GBP/USD

Upcoming events

GBP – 9:30 GMT – Unemployment rate, Claimant count change, Monetary policy minutes

USD - 12:00 GMT - MBA Mortgage Applications


Buyers and sellers are fighting for USD/JPY. Yesterday the he pair broke to 104.75, but failed to fix at this high. The January resistance line is still containing growth (currently at 104.40).

Resistance: 104.75, 104.90/105.00, 105.40

Support: 104.15, 104.00/103.90


Chart. H4 USD/JPY

Upcoming events

USD - 12:00 GMT - MBA Mortgage Applications


The USD/CHF upside is capped by the 0.9130/55 area. Bullish MACD histogram slipped below the signal line (bearish sign). However, the current decline is seen as corrective as long as the January rising trend line (0.9090).We see chances to buy the pair on dips.

Resistance: 0.9130, 0.9155, 0.9190/0.9200

Support: 0.9100/0.9090, 0.9030


Chart. H4 USD/CHF

Upcoming events

CHF – 10:00 GMT - ZEW Economic Expectations

USD - 12:00 GMT - MBA Mortgage Applications


AUD/USD rose to $0.8888 on higher-than-expected inflation data. Now traders are trying to estimate the implications for the RBA policy which has become more complicated. The pair’s above the upper Bollinger band and facing resistance of the 55-, 100- and 200-period MAs, as well as those of the bearish Ichimoku Cloud. Further catalysts will be needed to make Aussie pass $0.8900.

Resistance: $0.8900, $0.8950, $0.9000

Support: $0.8850, $0.8825, $0.8800, $0.8878

Chart. H4 AUD/USD

Upcoming events

USD - 12:00 GMT - MBA Mortgage Applications

AUD - 00:00 GMT - MI Inflation Expectations (Thursday)


USD/CAD descended from yesterday’s high at 1.0118 to the 0.0960 area. MAs keep rising, so the medium-term trend remains bullish, though the lines of the Cloud went horizontal. The pair’s in the narrow corridor between Tenkan and Kijun ahead of the Bank of Canada’s meeting today. This is an important day for CAD: traders expect easing comments from the BOC and the recent highs may be tested. Note, however, that extended CAD shorts, MACD and RSI divergence make the pair vulnerable for sudden sell-offs.

Resistance: 1.1000, 1.1019, 1.0174

Support: 1.0950, 1.0915, 1.0900

Chart. H4 USD/CAD

Upcoming events

USD - 12:00 GMT - MBA Mortgage Applications

CAD - 15:00 GMT - BOC Monetary Policy Report, BOC Rate Statement, Overnight Rate

CAD - 16:15 GMT - BOC Press Conference

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