We see the markets very calm but with a sideways movement on the higher time frames, but some short-term structure on several pairs suggests that we may see USD strength.
On EURUSD we see a five wave decline from 1.0828 to 1.0639 which indicates an important trend is in change, so the current bounce is likely temporary. We are tracking a simple a-b-c bounce that can reach Fib. area at 50-61.8% from where we believe the market could turn down in the next 24 hours.
EURUSD, 1H… full story here by forexcrunch.com
EURUSD (1.0699): EURUSD remained choppy in yesterday’s trading as the price fell to a 7-day low of 1.0621 before recovering by the end of the trading day. Price action in EURUSD is struggling to break out from the 1.0700 resistance level that has formed now. The euro fell for the most part of the day as Germany’s preliminary inflation data showed 0.6% monthly decline in inflation but the annual inflation rate rose 1.9%. On the 4-hour chart, the bearish divergence continues to play out with the lower high on the Stochastics. The bias remains to the downside as long as 1.0700 resistance holds out, which puts the downside towards 1.0600.
USDJPY intra-day analysis…(full story by forexcrunch.com)
As the dust settles from Trump’s divisive inauguration speech, let’s take a look at how the majors are shaping up.
EUR/USD’s recovery is likely to be tested this week.
Prices have been rotating higher since the turn of the year, forming a bullish support line. However, the market is now heading up into a thick zone of resistance defined by December’s highest high (1.0873) and highest close (1.0763).
While the resistance zone is compelling, it’s important to remember that short-term momentum remains bullish. That said, we will only look to short EUR/USD following clear signs of buying exhaustion… full story by investing.com