FX Majors Overview

Matt Simpson, CFTe, MSTA CityIndex

We take a look at the daily charts of EUR/USD, USD/JPY and USD/CAD to highlight key levels and patterns.

EUR/USD Daily

Euro's failure to close above 1.1500 on Friday warns of a bull-trap (and left a bearish hammer on the weekly chart).
Resistance was found near the 200-day average.
A break below 1.1437 confirms a 3-day bearish reversal and takes it further within its original range.

USD/JPY Daily

A coiling pattern is emerging beneath the 50% retracement level.
A downside break of 107.77 confirms a bearish continuation.
A break above 109.09 suggests a deeper retracement is underway. The trend remains bearish whilst below 111.38.

USD/CAD Daily

The Loonie is beginning to mean revert after an extended sell-off.
Support was found just above the 100-day average.
The lower trendline of the broken channel or the 38.2% retracement level are potential areas of resistance for bears to fade into, or bulls to target on lower timeframes.

Author

Matt Simpson, CFTe, MSTA

CityIndex

Matt Simpson is a certified technical analyst who combines charts and fundamentals to generate trading themes.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.