Forex Technical Major Pairs Analysis | January 21, 2022

USDX (USD Index)

The U.S dollar index maintains a position above the 95.50 level and is expected to continue the bullish trend. Today is the last trading day of the week. We might not see much movement away from the current level. Next week, traders will focus on the Fed interest-rate decision. The market reaction might depend on how aggressive the Fed will increase the interest rate.

EUR/USD

EUR/USD mostly trading sideway inside the 1.1300 – 1.1360 range. There is no change to the situation yet, traders will wait for movement out of the range before deciding on the next direction. In the long-term, we still expect the pair to do a bearish breakout and continue the bearish trend. Next week’s FOMC meeting might provide more clues on the pair’s direction.

Today critical levels to watch:

Support: 1.1300, 1.1185, 1.1120, 1.1000

Resistance: 1.1360, 1.1500

GBP/USD

GBP/USD traded above the daily SMA 200 and 1.3600. However, the bullish pressure has receded, and the pair is currently under pressure below both levels. If the pair continues to build more bearish pressure then we might see a bearish continuation to target the level below 1.3450. Traders will wait for the weekly closing level to determine the pair’s next direction.

Today Critical level to watch:

Support: 1.3600, 1.3450, 1.3330, 1.3300

Resistance: 1.3835

USD/JPY

USD/JPY failed to reclaim the 114.50 resistance level. The pair is currently under pressure and keeps printing lower low. If the pair continues moving lower and closed below the previous week’s low then it is set to continue the bearish movement toward 112.00. Traders will wait near the support level for a chance to enter long positions.

Today critical levels to watch:

Support: 113.00, 112.00

Resistance: 114.50, 115.00, 115.90

AUD/USD

AUD/USD trading back and forth the 0.7160 and 0.7300 – 0.7330 area. The pair consolidation will continue for now and traders will wait for either a close below 0.7160 or above 0.7330. The overall trend is bearish which suggests a bearish breakout is more favorable. However, traders will continue to observe the pair reaction for now or wait for resistance level retest to enter short positions.

Today critical levels to watch:

Support: 0.7160, 0.7000

Resistance: 0.7300, 0.7330, 0.7450

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