Despite the appreciation of USD during the Asian session, the US currency probably will remain under pressure. The technical levels of dollar index are showing probable test of the zone locked between 88,10 and 89,80. The tops from 2009 and 2010 at 89,62 and 88,71 will be the first levels for possible test. Another possible test will be FiBo 50% of the movement between 2011 and 2017 at 88,25 is also possible target before profit closing from short positions. This supports the scenario for increasing expositions during the current short-term correction and the created levels with the currency pairs are in the upper part of the consolidation of small time frames.
The EUR weight in DNY is 57.6% and probable the common currency will be the most profitable from new decline of USD. After the break of the key levels of the pair above 1,2100 and 1,2200 every small correction probably will drive investors to add to their positions, with target for large banks at 1,2440 in 1-3 weeks period.
Yesterday's destabilization of the stocks market may cause purchases of JPY, considering weak USD, USD/JPY will most likely continue it's downward movement. The levels which will be closely observed for possible profit takings in the upcoming weeks are the bottom of the pair from 2017 at 107,30.
GBP/USD also creates possibility for new upwards impulses, the levels watched by the banks are 1,30 until the end of the first week of February. Next resistance is 1,3835 as break above the levels increases the probability for reaching the expectation of the big players.
Source: Bloomberg Pro Terminal
Trader Nikolay Georgiev
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