8DC FX Daily Analysis

January 13 2022

US CPI for December headlined at 7%. The US Dollar fell on the news as this was priced in by the market. Most traders now expect the FOMC to hike US Interest rates in March.

D1 USDJPY

USDJPY Broke support at 115.10 and exceeded our downside target of 114.70 to reach support at 114.40.

If the area of support for the USD at 114.40/114.30 is broken, it would open up a test of 114.00 and possibly 113.80 in an extended move.

Resistance is now found at the pivotal 115.10, stronger resistance is found at 115.60.

D1 EURUSD

EURUSD broke out of its recent trading range and surged towards resistance at 1.1460. if the EUR can maintain upside momentum a break here at 1.1460 would see further strength to test 1.1490/1.1500.

Support will now be provided by the break out pivot of 1.1390/1.1380 as long as this area holds there is potential for further EURUSD gains. However, a break below here will see the EUR head back to its previous lows sub 1.1300.

D1 GBPUSD

The GBP continues to defy gravity testing resistance at 1.3720

Light support for the GBPUSD will be found first at 1.3660 with stronger support at 1.3610

If the GBP can continue its breathless run higher and breaks 1.3720, the next area of resistance will be found at 1.3760

D1 XAUUSD

Strangely Gold hardly moved as the USD fell against the all the major currencies after yesterday’s CPI release.

Resistance remains at 1830/1832, while support can be found first at 1814 and 1804

Contact us at support@8dcglobal.com for more information on how to trade Forex, Metals, Crypto and other Financial Markets with 8DC FX.

Published by Neil Callard

Forex Trader and Educator. 30 years trading experience, of which 20 years was market making in major currencies in large international financial institutions.

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