Tuesday 4th of January 2022
The US Dollar is bid up in early January forex trade
After failing at 1.1390/1.1400 the EURUSD has dropped to retest support at 1.1280/1.1270 a further break down from here would target 1.1230/1.1220 possibly 1.1180 in extension.
The downside pressure would be lifted if the EURUSD can move back above 1.1340. However, resistance ahead of 1.1400 remains strong.
The GBPUSD had extended its December bullish run to make a high close to 1.3550.
The return of USD strength yesterday has provided dip buyers an opportunity, giving the GBP some support at 1.3440.
However, the Pound is now finding resistance ahead of 1.3500, a move back above this level would see another run at the recent 1.3550 high.
Failure to break back above 1.3500, would lead to more short term weakness and a retest of support at 1.3440 and possibly 1.3380.
USDJPY testing highs last seen in late November, if resistance is broken at 115.50/60 then expect an attempt at 116.00, the USD looks a little over extended against the JPY for the moment.
Failure to make further upside gains, would see the USD target support at 114.70 and possible 114.40 in extension.
Gold’s Christmas rally failed to break 1830/1832 resistance, the consequences of this has been a corrective move back to support at 1800.00.
Resistance will now be found at 1812.00 and if broken 1822.00
However, should the USD continue to strengthen and break 1800, the initial target would be 1790 and possibly 1782 in extension.
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