The corrective pullback in the dollar that we observed at the beginning of this five-day period is nearing completion in most currency pairs. Thus, the USD/CAD pair, after declining to 1.3420, has returned above 1.3500, buyers of the EUR/USD pair failed to test 1.0900, and the USD/JPY pair is trading near the strategic resistance at 148.00.
The Japanese yen failed to develop an upward movement after the National Bank meeting earlier this week. The Japanese regulator kept the base interest rate unchanged but made somewhat elusive hints about changes in monetary policy this year. Judging by the movement of the yen after the Bank of Japan meeting, investors need more clarity from Japanese officials. After the announcement of the meeting results, the USD/JPY chart showed a decline to 147.00, but by evening, the pair recovered some of the losses. At the moment, the price is above the alligator lines on the daily timeframe, and if the range of 147.00-146.50 remains as support, the price may rise towards the upper fractal at 148.80.
From a fundamental perspective, today at 16:30 GMT+3, attention should be paid to the publication of data on core durable goods orders in the United States for December of last year. Also, at the same time, the GDP of the United States for the fourth quarter will be released.
The euro today may attempt to break out of the short-term flat corridor 1.0930-1.0820. If ECB officials announce changes in monetary policy this year, volatility in the pair may sharply increase. In addition to the ECB meeting scheduled for 16:15 GMT+3, attention should be paid to the publication of data on the business climate index in Germany for January at 12:00 GMT+3 today.
The EUR/USD technical analysis indicates that on the daily timeframe, the pair is below the alligator lines. A breakthrough of the lower fractal may open the way to 1.0700-1.0600. In case of a breakthrough of resistance at 1.0930, the price may resume its growth towards 1.1200-1.1100.
The USD/CAD currency pair reacted to the Bank of Canada meeting held yesterday with a retest of 1.3420 and a return above 1.3500. According to the USD/CAD chart, if the dollar continues to strengthen, the pair may break the upper fractal at 1.3540 and resume its upward movement towards 1.3700-1.3600.
From a fundamental perspective, today at 16:30 GMT+3, we are expecting data on the sales volume in the manufacturing sector of Canada.
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