January 28 2022
The upside surprise from Q4 2021 US GDP data release, added fuel to an already strong US Dollar, following the Hawkish FOMC.
Support for GBPUSD is at 1.3360 this morning and while this area holds, you could see some corrective moves higher to 1.3440.
If 1.3360 support is broken then expect a drop to 1.3300/1.3280. Alternatively above 1.3340 the target will be 1.3480/90
Yesterday’s EURUSD drop exceeded our downside target of 1.1180, and has tested support at 1.1130/40. If this area is broken, then you will very likely see an attempt at 1.1100 with a 1.1080 target area.
Immediate resistance is found at 1.1170/80 if the EUR can break up here, expect further gains to test 1.1220/30.
Having broken down from 1.1270 it is likely that the EURUSD will try to establish a new trading range and consolidate from the low 1.11’s.
The USDJPY has made gains to 115.40/50 resistance, and now needs to clear this region to continue on its run up to target 116.00/10.
Failure to break the upside would lead to some corrective selling to support at 115.00/114.90. Below 114.90 targets 114.50.
Gold continued its downside slide on the strong US Dollar narrative, coming close to 1790 support. If the weakness continues expect tests of 1790 and 1782.
Resistance is going to be found at 1802 then at 1806 and 1810.
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