EURUSD is consolidating on Tuesday; investors are waiting for the news.

The major currency pair is barely moving on Tuesday morning in anticipation of the news. The current quote for the instrument is 1.2130.

The “greenback” managed to get much stronger yesterday amid increasing market volatility everywhere. Apart from this, the published statistics indicate problems with business activities in some European countries that are directly connected to lockdowns.

According to the European Central Bank Governor Christine Lagarde, the European economy may take more time to recover than expected earlier but it will recover. She believes that state authorities must continue stimulus programs, both fiscal and monetary. The European economy, as Lagarde sees, will be different after the pandemic and she thinks it will be good.

The ECB Governor is sure that the GDP reading for the fourth quarter of 2020 will be zero but in 2021 it will be positive as the region’s economy recovers.

Today’s economic calendar features the report of the Consumer Confidence from the Conference Board in the USA for January, which is expected to improve up to 88.9 points. The stronger the reading, the better for the USD.

EURUSD, “Euro vs US Dollar”

As we can see in the H4 chart, the correctional uptrend is about to finish and may later be followed by a new descending wave. While the first descending wave earlier reached 38.2% fibo, the next one may fall towards 50.0% and 61.8% fibo at 1.1976 and 1.1888 respectively. After the correction is over, the asset may start a new mid-term rising wave to break the high at 1.2350 and then continue growing towards the long-term fractal high at 1.2555.

The H1 chart shows that after breaking 38.2% fibo, the correctional uptrend has failed to reach 50.0% fibo at 1.2202. A local divergence on MACD may hint at a further decline towards the low. If EURUSD breaks the low at 1.2054, the asset may continue trading downwards to reach the mid-term 50.0% fibo at 1.1976.

USDJPY, “US Dollar vs. Japanese Yen”

As we can see in the H4 chart, the pair is still trying to complete the local correction and resume its growth. The closest target of a new rising impulse may be the mid-term 23.6% fibo at 104.74, a breakout of which will lead to a further growth towards 38.2% fibo at 106.07. On the other hand, if the asset breaks the low at 102.59, the instrument may continue falling to reach the fractal low at 101.18.

In the H1 chart, a divergence on MACD made the pair start a new pullback to the downside, which, after breaking 50.0% fibo, has failed to reach 61.8% fibo at 103.28. However, a local divergence on MACD hints at a possible descending impulse that may finally reach the latter level. The resistance is the local high at 104.40.

EURUSD intends to keep its positive momentum as investors are in anticipation of a new stimulus package in the USA.

The major currency pair is positively stable on Monday. The current quote for the instrument is 1.2180.

So, Joe Biden has taken over the White House and capital markets are in anticipation of additional stimulus packages that may be “injected” into the American economy. In this light, the USD is looking rather neutral because the packages imply more pluses than minuses. However, right now investors want to buy, that’s why their demand for the “safe” USD is pretty low. Hence, the decline in the “greenback”.

This new week will be quite interesting for market players. First of all, there will be another Fed meeting. The interest rate is no problem as it is expected to remain unchanged at 0-0.25% for quite a while but the regulator’s comments on the country’s economic outlook may get a bit more positive and optimistic. Secondly, the economic calendar features a lot of reports and data.

For example, the USA is scheduled to publish the Conference Board Consumer Confidence for January, the GDP for the fourth quarter of 2020, Personal Spending and Income for December, as well as the revised report on the Inflation Expectations from the University of Michigan for January.

Stable data will help the American currency to stay on the current levels. However, if the data turns out to be rather weak, investors may be forced to sell the USD.

EURJPY, “Euro vs Japanese Yen”

EURJPY is trading at 126.32; the instrument is moving above Ichimoku Cloud, thus indicating an ascending tendency. The markets could indicate that the price may test Tenkan-Sen and Kijun-Sen at 126.05 and then resume moving upwards to reach 127.20. Another signal in favor of a further uptrend will be a rebound from the support level. However, the bullish scenario may no longer be valid if the price breaks the cloud’s downside border and fixes below 125.45. In this case, the pair may continue falling towards 124.55. To confirm further growth, the asset must break the descending channel’s upside border and fix above 126.55.

BTCUSD, “Bitcoin vs US Dollar”

BTCUSD is trading at 33393.00; the instrument is moving above Ichimoku Cloud, thus indicating an ascending tendency. The markets could indicate that the price may test the cloud’s upside border at 32625.00 and then resume moving upwards to reach 38030.00. Another signal in favor of a further uptrend will be a rebound from the descending channel’s upside border. However, the bullish scenario may no longer be valid if the price breaks the cloud’s downside border and fixes below 30705.00. In this case, the pair may continue falling towards 28645.00. To confirm further growth, the asset must break the resistance area and fix above 34005.00.

NZDUSD, “New Zealand Dollar vs US Dollar”

NZDUSD is trading at 0.7212; the instrument is moving above Ichimoku Cloud, thus indicating an ascending tendency. The markets could indicate that the price may test the cloud’s upside border at 0.7195 and then resume moving upwards to reach 0.7315. Another signal in favor of a further uptrend will be a rebound from the descending channel’s upside border. However, the bullish scenario may be canceled if the price breaks the cloud’s downside border and fixes below 0.7125. In this case, the pair may continue falling towards 0.7035. To confirm further growth, the asset must break the resistance area and fix above 0.7245, thus indicating the completion of an Upside-Down Head & Shoulders reversal pattern.

USDCAD, “US Dollar vs Canadian Dollar”

As we can see in the H4 chart, the descending tendency continues. Right now, after forming a Shooting Star reversal pattern not far from the resistance level, USDCAD may reverse in the form of another descending impulse. Later, the asset may continue falling within the descending channel. In this case, the downside target will be at 1.2585. However, an alternative scenario implies another correction towards 1.2765 before the instrument resumes its decline.

AUDUSD, “Australian Dollar vs US Dollar”

As we can see in the H4 chart, AUDUSD is forming another rising impulse. Right now, after forming several reversal patterns, such as Inverted Hammer, not far from the support area, the pair may reverse and resume growing to reach the resistance area at 0.7835. At the same time, an opposite scenario says that the price may return to 0.7690 before resuming the ascending tendency.

USDCHF, “US Dollar vs Swiss Franc”

As we can see in the H4 chart, the correction within the downtrend continues. At the moment, after forming several reversal patterns, such as Shooting Star, not far from the resistance area, USDCHF is reversing. Later, the asset may complete the correction and resume the descending tendency. In this case, the downside target may be the next support area at 0.8800. Still, there might be an alternative scenario, according to which the asset may start a new pullback towards 0.8900 before testing the support area.

EURUSD, “Euro vs. US Dollar”

In the H4 chart, after breaking the 200-day Moving Average to the upside, EURUSD is moving above it, thus indicating an ascending tendency. In this case, the price is expected to break 4/8 and then continue growing towards the resistance at 5/8. However, this scenario may no longer be valid if the price breaks 3/8 to the downside. After that, the instrument may continue trading downwards to reach the closest support at 2/8.

As we can see in the M15 chart, the pair has broken the upside line of the VoltyChannel indicator and, as a result, may continue its growth.

GBPUSD, “Great Britain Pound vs US Dollar”

As we can see in the H4 chart, GBPUSD is trading within the “overbought area”. In this case, the price is expected to break 8/8 and then continue falling towards the support at 6/8. However, this scenario may no longer be valid if the price breaks the resistance at +1/8 to the upside. After that, the instrument may continue growing and reach +2/8.

In the M15 chart, the price may break the downside line of the VoltyChannel indicator and, as a result, continue trading downwards.

EURUSD, “Euro vs US Dollar”

EURUSD has formed another consolidation range around 1.2170; right now, it is moving to break it to the upside to reach the target at 1.2260. Later, the market may return to 1.2170 and then resume trading within the uptrend with the target at 1.2282.

GBPUSD, “Great Britain Pound vs US Dollar”

After finishing the correctional wave at 1.3642, GBPUSD is forming one more ascending structure towards 1.3727. After that, the instrument may correct to reach 1.3682 and then start another growth with the target at 1.3760.

USDRUB, “US Dollar vs Russian Ruble”

After breaking 74.30 to the upside, USDRUB is expected to continue the correction and reach 75.52. Later, the market may fall to reach 74.20 and then form one more ascending structure with the target at 75.65.

USDJPY, “US Dollar vs Japanese Yen”

After finishing the ascending wave at 103.86, USDJPY is falling to reach 103.66 and may form a new consolidation range around this level. Possibly, the pair may break the downside border and start a new decline with the target at 103.22.

USDCHF, “US Dollar vs Swiss Franc”

After finishing the descending wave at 0.8835 and then returning to 0.8860, USDCHF is still consolidating and this range may be considered as a downside continuation pattern. If later the price breaks 0.8835 to the downside, the market may resume trading downwards with the short-term target at 0.8802.

AUDUSD, “Australian Dollar vs US Dollar”

After completing the descending wave at 0.7700 and then returning to 0.7737, AUDUSD is expected to fall and reach 0.7686. After that, the instrument may start another growth to break 0.7737 and then continue trading within the uptrend with the target at 0.7792.

BRENT

After finishing the correction at 54.30, Brent has completed the ascending structure towards 55.35 to test it from below. Possibly, today the asset may resume trading downwards with the short-term target at 54.10.

XAUUSD, “Gold vs US Dollar”

After completing the descending wave at 1837.37 along with the correction towards 1855.00, Gold is expected to start another decline to reach 1834.00. Later, the market may form one more ascending structure with the target at 1850.00.

BTCUSD, “Bitcoin vs US Dollar”

After finishing the descending wave at 31000.00, BTCUSD is growing towards 33400.00. After that, the instrument may fall to reach 32300.00 and then form one more ascending structure with the target at 34600.00.

S&P 500

The S&P index is growing towards 3862.1. Later, the market may start another decline to reach 3812.2 and then resume trading upwards with the target at 3875.0.

BTCUSD, “Bitcoin vs US Dollar”

BTCUSD is trading at 31781.00; the instrument is moving below Ichimoku Cloud, thus indicating a descending tendency. The markets could indicate that the price may test Tenkan-Sen and Kijun-Sen at 33805.00 and then resume moving downwards to reach 26355.00. Another signal in favor of a further downtrend will be a rebound from the descending channel’s upside border. However, the bearish scenario may no longer be valid if the price breaks the cloud’s upside border and fixes above 37590.00. In this case, the pair may continue growing towards 41105.00.

USDRUB, “US Dollar vs Russian Ruble”

USDRUB is trading at 73.89; the instrument is moving below Ichimoku Cloud, thus indicating a descending tendency. The markets could indicate that the price may test the cloud’s downside border at 73.95 and then resume moving downwards to reach 71.35. Another signal in favor of a further downtrend will be a rebound from the upside border of the Triangle pattern. However, the bearish scenario may be canceled if the price breaks the cloud’s upside border and fixes above 74.45. In this case, the pair may continue growing towards 75.55. To confirm further decline, the asset must break the pattern’s downside border and fix below 72.65.

USDJPY, “US Dollar vs Japanese Yen”

USDJPY is trading at 103.58; the instrument is moving inside Ichimoku Cloud, thus indicating a sideways tendency. The markets could indicate that the price may test the cloud’s downside border at 103.55 and then resume moving upwards to reach 104.65. Another signal in favor of a further uptrend will be a rebound from the support level. However, the bullish scenario may no longer be valid if the price breaks the cloud’s downside border and fixes above 103.20. In this case, the pair may continue falling towards 102.35. To confirm further growth, the asset must break the descending channel’s upside border and fix above 103.95.

XAUUSD, “Gold vs US Dollar”

As we can see in the H4 chart, after plunging, the metal is still trying to recover. Right now, after forming several reversal patterns, such as Engulfing, close to the resistance area, XAUUSD may reverse and resume falling towards the support level. In this case, the downside target will be at 1800.00. At the same time, an opposite scenario implies that the price may continue its growth towards 1890.00 without reversing and correcting.

NZDUSD, “New Zealand vs. US Dollar”

As we can see in the H4 chart, the pair is still correcting. Right now, after forming several reversal patterns, such as Harami, close to the resistance level, NZDUSD is reversing and may later reach the support area at 0.7103. However, an alternative scenario implies that the price may continue growing towards 0.7255 without reversing and forming any corrections.

GBPUSD, “Great Britain Pound vs US Dollar”

As we can see in the H4 chart, the uptrend continues. Right now, after forming a Harami pattern not far from the resistance area, GBPUSD is reversing. In this case, the correctional target is the support level at 1.3580. After that, the instrument may rebound from this level and resume moving upwards. Still, there might be an alternative scenario, according to which the asset may continue growing without reversing and correcting.