Note – Charts provided by Trading View

EUR/USD:

Monthly timeframe:

(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves)

Following the break of long-term trendline resistance (1.6038) in July, and subsequent break of supply at 1.1857/1.1352 in August, EUR/USD, by way of two back-to-back bullish candles, welcomed 2021 in good health.

This—despite January’s modest 0.9 percent slide—reasons additional upside towards ascending resistance (prior support – 1.1641) may eventually be on the horizon.

The primary uptrend has been in play since price broke the 1.1714 high (Aug 2015) in July 2017.

Daily timeframe:

Partly modified from previous analysis –

38.2% Fib support at 1.2059 welcomed price for a second time this month, as the pair failed to find acceptance beyond 1.2189.

Buying invites the possibility of retesting 2021 tops at 1.2349; in case of a EUR/USD dip, demand at 1.1923/1.2001 occupies space south of 1.2059—an area complemented by trendline support (1.0774).

The RSI indicator navigated south of the 50.00 centreline on Wednesday, leaving resistance at 60.30 untested.

H4 timeframe:

Partly modified from previous analysis –

Holding back sellers since the beginning of December, demand at 1.2040/1.2065 stepped forward on Wednesday and prompted a hammer candle formation (bullish signal at troughs).

Resistance at 1.2179 also remains in the crosshairs (capping buyers since the middle of January), while a 1.2179 breach shines light on 1.2214 resistance. Interestingly, the aforesaid level is sheltered under supply coming in from 1.2282/1.2245 (Fib fans will also note the 61.8% Fib level inhabits territory at 1.2241).

H1 timeframe:

Pressured by a DXY push to tops at 90.88 on Wednesday, the euro swamped 1.21 bids and greeted support at 1.2058, alongside the RSI indicator dipping a toe in oversold waters.

Short-term price has since staged a moderate revival and regained position above 1.21, with the level welcoming a retest in recent hours and throwing local resistance at 1.2145 in the mix.

Meanwhile, the RSI indicator is on the verge of retesting resistance around the 50.00 centreline.

Observed levels:

The rebound from 38.2% Fib support at 1.2059 on the daily, in tandem with monthly calling for higher terrain and H4 forming a hammer candle from demand at 1.2040/1.2065, could have buyers extend gains off 1.21 on the H1 to at least resistance at 1.2145.

USD/JPY:

Monthly timeframe:

(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves)

Over the span of four years, USD/JPY carved out a descending triangle pattern between 118.66/104.62.

Although December pursued terrain south of 104.62, January has so far attempted a comeback and is within relatively close range of retesting 104.62.

104.62 ceding ground throws light on support from 101.70, with a break here uncovering trendline support (76.15) and the descending triangle’s take-profit objective at 91.04 (red).

Daily timeframe:

Trendline resistance (111.71) made a show on Wednesday, following two weeks of consolidation.

Traders will note the lower side of the descending triangle pattern at 104.62 unites closely with the daily trendline resistance. Daily support, however, falls in at 103.08.

Also of technical interest is the RSI indicator now linking with resistance at 57.00, a level hindering upside since July 2020.

H4 timeframe:

In response to Wednesday’s passionate advance, resistance at 104.16 is in the spotlight, joined by a handful of Fib levels between 104.17 and 104.10.

Rupturing 104.16 today shifts focus to resistance at 104.76, assuming buyers are able to conquer 104.39 and 104.57 pinnacles. It should also be noted 104.76 resistance shares space with monthly resistance at 104.62 (lower side of the descending triangle pattern).

H1 timeframe:

Against the backdrop of higher timeframes, H1 took on the 104 level on Wednesday and nearby supply from 104.03/104.10. Although interpreted as a bullish indication, with H1 resistance targeted at 104.32, buyers could struggle to find grip, given monthly, daily and H4 resistances.

With respect to the RSI indicator, you will note the value exited overbought space in recent hours, signalling upside momentum is perhaps decelerating.

Observed levels:

Monthly, daily and H4 timeframes all joining hands and demonstrating resistance places H1 breakout buyers above 104 in a potentially tight spot. A H1 close back under 104, therefore, could be interpreted as a bearish signal, with the 100-period simple moving average (H1) targeted at 103.75.

GBP/USD:

Monthly timeframe:

(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves)

December’s 2.5 percent extension elevated GBP/USD and stirred trendline resistance (2.1161).

January, as you can see, currently trades off session lows and recorded fresh 2021 highs (up by 0.2 percent).

In terms of trend, the primary trend has faced lower since early 2008, unbroken (as of current price) until 1.4376 gives way – April high, 2018. In effect, the aforesaid high represents the next upside objective on the monthly chart.

Daily timeframe:

Partly modified from previous analysis –

After days of hesitation, Wednesday refreshed 2021 highs at 1.3758 and crossed paths with resistance at 1.3755.

While price wrapped up the session a touch off lows, the monthly timeframe’s trendline resistance breach, in addition to GBP/USD trending higher since early 2020, may make it difficult to attract additional bearish flow.

Breaching 1.3755 brings light to supply at 1.3996/1.3918.

The RSI indicator has revealed a rangebound environment since November, limited by support around 47.00 and resistance at the 66.00 region. It is common to see higher oversold support areas form in an uptrend.

H4 timeframe:

Hindered by daily resistance at 1.3755, Wednesday twisted just ahead of H4 resistance at 1.3763 with price poised to reconnect with demand at 1.3618/1.3637.

Space above 1.3763 highlights supply at 1.3837/1.3800, while air beneath the aforesaid demand unearths another demand at 1.3502/1.3536.

H1 timeframe:

US trading on Wednesday likely squeezed out a number of traders on both sides of the market around the 1.37 level. Though, with candle flow responding to nearby demand at 1.3644/1.3664—an important zone given it was here a decision was made to break through 1.37 and multiple highs—this could hinder downside attempts beneath 1.37 today.

Also of technical relevance is the H4 demand at 1.3618/1.3637 positioned just beneath the H1 demand underlined above.

Observed levels:

Although daily resistance at 1.3755 made its presence felt yesterday, the prevailing uptrend and monthly trendline break supports further upside. That said, a drop to H4 demand at 1.3618/1.3637 could be on the cards to attract fresh dip-buyers, located under H1 demand at 1.3644/1.3664.

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