Levels We Are Watching for Major FX Pairs

EUR/USD — It is expected to close below the 21-DMA to confirm bearish dynamics, as the pair reached its lowest level since 2022; the fear and greed indicator shows that bears have controlled the price action the most since late November; there is no strong support until parity, except in the 1.0089-1.0096 range; the monthly DeMark Buy Countdown could complete in February, suggesting a potential significant recovery, especially if deeper cyclical lows are reached during that time; note that the indicator has not sent a valid signal in the only instance it was completed in the past.

Spot: 1.0235
Intraday support: 1.0201, 61.8% Fibonacci retracement of gains from September 2022 to July 2023
Weekly support: 1.0141, session’s minimum level
Intraday resistance: 1.0357, 21-DMA
Weekly resistance: 1.0424, 55-DMA

DXY — New cyclical highs offset the dynamics indicating a short-term bearish MA crossover on the daily chart; price action corresponds to a Bullish Engulfing Line on the quarterly chart, a completed daily DeMark Buy Setup, and support from the 55-DMA, as the daily fear and greed indicator extends its upward momentum.

Spot: 1,321.06
Intraday support: 1,307.84, 21-DMA
Weekly support: 1,296.89, 21-DMA
Intraday resistance: 1,325.10, session’s maximum level
Weekly resistance: 1,347.80, November 3, 2022 peak

USD/JPY — The latest correction reflects RSI divergence on the quarterly chart; short-term momentum shifts to neutral zone.

Spot: 155.63
Intraday support: 154.67, session’s minimum level
Weekly support: 153.72, January 27 low
Intraday resistance: 156.35, 21-DMA
Weekly resistance: 158.87, January 10 peak

GBP/USD — The weekly Morning Star failed to provide support as daily indicators point to further losses.

Spot: 1.2292
Intraday support: 1.2249, session’s minimum level
Weekly support: 1.2100, January 13 low
Intraday resistance: 1.2346, 21-DMA
Weekly resistance: 1.2513-23, 55-DMA, January 27 peak

EUR/CHF — The weekly Bearish Harami sets the tone, with support from the 55-DMA holding for now.

Spot: 0.9395
Intraday support: 0.9368, 55-DMA
Weekly support: 0.9320, session’s minimum level
Intraday resistance: 0.9423, 21-DMA
Weekly resistance: 0.9518, January 24 peak