Despite initial weakness observed in response to a dovish ECB press conference from Draghi, which saw the ECB chief acknowledging building downside risks to the eurozone, EUR managed to post a strong reversal on Friday.
EUR strengthened in response to the sell-off in USD as the market braces for a more cautious tone from the Fed at the January FOMC meeting this week.
EURUSD is at an interesting point. Having recently broken out of the bearish channel which has framed price action since the start of last year, EURUSD retested the broken channel top last week and bounced. For now, it seems price is continuing to track the short-term bullish channel, putting focus on an eventual further test of 1.1569.
GBPUSD has now firmly broken out of the falling wedge pattern that had framed price action over the last four months and is well on its way to testing the Q3 2018 top at 1.3304. If price falls back from here initially, bulls will be looking to use the 1.2990 level as a base for a further run higher, targeting a test of the next key resistance at the 1.3756 level.
The rising trend line from 2015 lows managed to keep gold supported over the last month leading to an eventual break of the 1298.29 level resistance. While above here, focus is on a test of further resistance at the 1325.96 level and above there the multi-year highs of 1365.53. To the downside, any sell-off is likely to find support at the 1243.90 level.