NOTE: Trading in January will be limited. This is a low probability month as institutional money is slowly returning.
Keep in mind that political drama in the US will still be a factor. Rioting will potentially continue. And anything can happen on the 20th during inauguration of Biden. So please be careful with your trading and risk.
Bias – Bearish
Resistance 90.90 … hit twice
Support 89.95 … hit once
Long term, I am still bearish on the dollar. However, still looks like we are headed higher to at least start the week. There is a weekly liquidity draw above 91.25 that reaches up to 91.75. Then there is some strong resistance around the 92.10 level.
No trading today. The H1 resistance at 90.31 held as is moving price lower towards the D1 support at 89.95. If price can move below that support, I will be targeting weekly and monthly support levels around 89.00. Note there is new resistance at H1 90.26 just below the NY midnight open at 90.30 … strong resistance area. A retrace to here and move lower is possible.
Bias – Bullish
Support 1.2135 … just formed by the move up into H1 Liquidity/Resistance (not drawn on chart)
Long term bullish on the EURUSD. Price just hit a weekly fair value gap (liquidity) and rejected. However, I do expect price to enter this area. The EURUSD is showing weakness relative to the dollar and GBPUSD in that today broken the Dec 1st prior low while the dollar has not reached the same corresponding high and the GBPUSD is not even close to that same low.
No trading. H1 liquidity above 1.2136 has drawn price higher. Price is at the H1 resistance of 1.2140. Not expecting this level to hold. Ultimately, if price can get past that D1 resistance at 1.2151, I think it will reach for the W1 resistance at 1.2185, where I think the high of the day will come in.
Bias – Bullish
Resistance 1.3760 (monthly) … Daily level at 1.3800
Resistance 1.3760 (monthly)
Support 1.3683 (NY midnight open)
Long term bullish on the GBPUSD. There is a big liquidity draw just above current price. However, with the bullish dollar, I would expect the GBPUSD to consolidate or drop slightly for the week, allowing the EURUSD to move more to the downside.
No trading. The GBPUSD has moved up to form a new high, breaking through W1 resistance at 1.3712. this weekly resistance was already tested twice. So not as strong as before. Price also filled in a weekly FVG to the pip and has dropped a little. There is now a M1 resistance level at 1.3760. Very critical area for the GBPUSD. I am looking for it to break through and push towards 1.4500. But on the sidelines until a clear direction is presented.