EURUSD on a corrective path

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The US dollar jumped as traders made room for the Fed minutes later in the day. The euro’s consolidation at the end of December has failed to achieve a new high. A sharp drop below the demand zone 1.0580-1.0610 confirms exhaustion and is typical of liquidation after the pair enjoyed a two-month-long uninterrupted rally. The daily support at 1.0450 is the level to see if buyers start to come back. Otherwise, the correction could send the price to 1.0300. The support-turned-resistance at 1.0590 is the first hurdle to clear.
 

USDCAD bounces back

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The Canadian dollar softens as risk-sensitive currencies take a backseat amid the greenback’s rally. From the daily chart’s perspective, the medium-term bias remains upward and the bulls have been waiting for an opportunity to stake in. A quick swing between 1.3510 and 1.3610 has narrowed the trading range, paving the way for the next one. A bullish breakout indicates that the path of least resistance is up and 1.3700 is a major obstacle ahead. Its breach would help the bulls regain control. 1.3600 is the closest support.
 

UK 100 tests major ceiling

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The resources-heavy FTSE 100 outperformed thanks to energy stocks. A pop above 7550 may have put the index back on track, sending sellers to cover their bets. 2022’s top around 7650 is the last obstacle and a bullish breakout could trigger a runaway rally with momentum buyers joining the party. Then a new high above 7800 could be in store. After the RSI shows an overbought situation, a limited pullback may attract buyers in the former supply zone near 7510. 7410 is a key level to keep the bounce intact.

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