DAILY TECHNICAL ANALYSIS FOR JANUARY 11, 2022petar skakalov
The sell-off of the EUR/USD was limited to the level at 1.1315 and the bulls took back control over the market. During the early hours of today`s trading, the European common currency is still recovering some of its losses against the dollar and the pair is headed for a test of the resistance zone at 1.1359. A successful breach here would strengthen the positive expectations for the future path of the pair and could lead to a rally towards the level at 1.1440. However, if the mentioned zone at 1.1359 withholds the bullish attack, then the bears could attempt a breach of the important support zone and the one at 1.1272. A violation of this level will most likely lead trading out of the range between 1.1272 and 1.1359 and deepen the decline towards the lower target at 1.1236. The ECB President Lagarde`s speech (today; 10:20 GMT), as well as the Fed Chair Powel’s testimony (today; 15:00 GMT) should lead to increased volatility.
Current level – 115.32
The dollar lost some ground against the yen and the currency pair moved towards the support level at 114.99. At the time of writing the analysis, the pair is consolidating above the mentioned zone, but if the bears gain enough momentum and breach it, then the drop will most likely accelerate towards the support at 114.28 and would easily lead to new losses for the Ninja. If the bulls re-enter the market and rally above the resistance at 116.16, then the USD/JPY could easily reach the levels at around 117.00.
Current level – 1.3588
The British pound regained some of its recent losses against the dollar and, during the early hours of today`s trading, the pair is headed for a test of the resistance zone at 1.3596. Success for the bulls here could easily continue the rally towards the levels at 1.3620, followed by a move towards the resistance at 1.3700 that comes from higher time frames. The first target for the bears is still the support at 1.3555. A breach of the mentioned zone and a successful test of the lower level at 1.3507 would draw a more bearish picture for the Cable.
Gold price breaches the resistance
Gold price breached 1797.00 level clearly and closed the daily candlestick above it, to stop the recently suggested negative scenario and turn to rise, on its way to visit 1825.15 level as a first main station.
Therefore, we expect to witness more bullish bias in the upcoming sessions unless breaking 1797.00 and holding below it.
The expected trading range for today is between 1790.00 support and 1825.00 resistance.
The expected trend for today: Bullish
Source: Technical analysis