The U.S. Dollar Retreats
EURUSD
Yesterday, despite the days-off in a number of the EU countries, the EURUSD was gradually increasing and managed to gain about 100 points. During the day, the pair have managed to reach the level of 1.2867, and during the Asian session on Tuesday — tested the resistance at 1.2880. Given the low liquidity of trading, this increase can be considered as the corrective one allowing the pair to sell at the best price. It is wise to take into account the pair’s increase to 1.2920-1.2980, which will not likely change the current bearish trend.
GBPUSD
The GBPUSD rebounded from the 1.5180 support, overcome the resistance of 1.5200-1.5220 and tested the 1.5258 level. It is wise not to rely on this pair’s increase, given low market liquidity yesterday, thus it is advisable to wait until the bulls’ seriousness has been approved – then, the pair will manage to consolidate above the 1.5220-1.5200 proximity (support, this time). In this case, the pound will continue increasing towards the 53rd figure, otherwise — the bears will test the support of 1.5180 again.
USDCHF
The USDCHF attempted to develop an upward trend above the 95th figure. But it was not supported by the market participants, thus it decreased below this level again. This time, its rate dropped to 0.9443. The dollar risks at decreasing even further towards the support near the 0.9400-0.9360 proximity, the loss of which would worsen prospects for the American dollar. But if the dollar continues to saty above the support, the pair will have chances to increase.
USDJPY
The pair bears were happy that the USDJPY managed to pass the support at the 93.90-93.50 proximity, which became the catalyst for the pair’s further reduction – the pair dropped to 92.56, due to yesterday’s decrease. Thus, the USDJPY has approached its more important support of 92.20. The RSI has entered the oversold zone on the 4-hour chart, thus it will likely have a pullback from this support. But is is wise not to take this fact at your face value, since the immediate bears’ target can become the 90.87 low in February. Nevertheless, the increase towards the broken support of 93.50-93.90, which now acts as the resistance one is more logical to use it for the pair’s sales at this stage.
