8DC FX Daily Analysis

February 1 2022

D1 EUEUSD

Yesterday’s EURUSD recovery was strong enough to see it break resistance at 1.1220 on its way to a high of 1.1247. If this upside momentum can be maintained the next targets are 1.1270/80 and 1.1320/30 in an extended rally.

However, if the EURUSD breaks down at 1.1180 I expect further losses back to the recent lows at 1.1130, and possibly 1.1080.

D1 GBPUSD

Cable managed to break above 1.3440 and recorded a high close to 1.3460. The break up is not yet confirmed, and it is important that support at 1.3420 holds. This would allow further gains to 1.3480 and possibly 1.3520.

If the GBPUSD slips back below 1.3420 it would look like a failed break, and subsequently renewed GBP weakness to 1.3370/60 support.

D1 XAUUSD

Gold recovered from it lows to trade higher on a broadly weaker US Dollar. However, it has yet to break 1800/1802 resistance.

If the USD weakness prevails then you will see a break of 1802 to target 1808 and 1812. Support is now found at 1890 and of course 1882/1880.

D1 USDJPY

USDJPY failed again to break 115.60 yesterday and pulled back to 114.92.

This second failure will see some consolidation, and a possibly drop back to 114.60/50 support, before attempting higher again. If the downside correction is over, the USD needs break 115.60, and target 116.20/30.

Alternatively if the USD breaks down below 114.50, it is likely to keep going back sub 114.00 targeting 113.60.

Trade Forex, Crypto, Precious and Industrial Metals and much more at http://www.8dcglobal.com

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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