Intraday Forex Thursday, January 14 (EURUSD, USDJPY, etc.) Dollar extended its rebound from near 3-year lows for second day, supported by higher yield


Hi everyone. This observation is made around 5:00 UTC today, with 30 minutes time frames. The Resistance and Support Line were constructed according to Fibonacci retrenchment. Any discussion is welcomed.

Stocks in Asia-Pacific were mostly higher as investors regionally reacted to Chinese trade data for December, while also keeping eyes on the vaccine rollout and on the details of the next U.S. fiscal stimulus plan and as Congress began President Trump’s impeachment hearings.
Oil prices eased as the threat of lower demand due to rising global COVID-19 cases outweighed drawdown in U.S. crude inventories.
Dollar holds ground as more fiscal stimulus is anticipated from President-elect Joe Biden's incoming administration. Biden is expected to announce his economic plans for pandemic relief on Thursday.

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  • The euro slipped around 0.1%, to stay at $1.2146 on Thursday, after sliding 0.4% overnight.​
  • The greenback found support from expectations of a continued economic recovery in the U.S., while the European countries resorted to more tighter lockdowns to fend off a second COVID-19 wave.​
  • EUR/USD also retreated on comment from ECB President Lagarde, who said the ECB was closely monitoring exchange rates in an apparent attempt to weaken the euro and help Eurozone exporters.​
  • Also, increased political uncertainty in Italy pressured the euro after Italian PM Conte's coalition lost its majority in parliament.​
  • Meanwhile, the Fed Beige Book, released Wednesday afternoon, was positive for the dollar as it stated that most Fed districts reported a modest increase in economic activity.​
  • More fiscal stimulus also expected from President-elect Joe Biden's incoming administration and a Congress that will soon be controlled by Democrats. Report tells that the incoming plans will be announced later today.​
Important Levels to Watch for:​
  • Resistance line of 1.22267 and 1.22591.​
  • Support line of 1.21217 and 1.20893.​

  • The dollar rose 0.15% to 104.024 yen, on report that Biden is due to announce his economic plans for “trillions” of dollars in pandemic relief on Thursday.​
  • The pair also moves higher after the Nikkei reported on Wednesday that the BOJ is likely to downgrade its assessment of the Japanese economy at its policy meeting next week, on concern that the latest emergency declaration will take a heavy toll on the economy.​
  • Japanese PM Suga on Wednesday expanded Japan's state of emergency beyond the Tokyo region to seven more prefectures, now covers about 60% of the Japanese economy.​
Important Levels to Watch for Today:​
  • Resistance line of 104.323 and 104.570.​
  • Support line of 103.526 and 103.280.​

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