February 3 2022
Monetary Policy Decisions from the Bank of England, and the European Central Bank will determine directional trade today.
In the last 5 trading days the Pound has moved up from 1.3360 to 1.3580. Today The Bank of England is widely expected to raise interest rates from 0.25% to 0.5%.
Resistance this morning at 1.3590/1.3600 if broken the next target will be 1.3660 and 1.3700 in extension.
Support will be found first at 1.3500 and then 1.3420
The ECB is expected to leave Interest rates unchanged as it clings to the belief that inflation of 5.1% in the EZ is just transitional. I’m not sure anyone believes this anymore.
Resistance is now at 1.1330/40, if the EUR breaks here it will target 1.1360/70 and possibly 1.1400 in an extended move up.
The first areas of support on the downside will be found at 1.1270 and then 1.1220.
USDJPY broke 114.60 yesterday, so far the resulting sell off has yet to test strong support at 114.00.
While 114.00 holds, the USD could still recover to test 114.80, and possibly the key 115.10/20 pivot.
However, a loss of 114.00 support would target the 113.50 recent low from January 24.
The past 4 trading days have been slow going as Gold continues its recovery from 1782. While support at 1798.00 holds firm, the upside seems to be the path of least resistance.
The next level of upside resistance that needs to be tested is at 1812, if broken the market will be looking for further gains to 1816 and 1822.
However, a break of 1798 support would see 1790/1788 as the first target to the downside.
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