Fundamental

The US Dollar is weak, but the British Pound is not very strong, so upside may be limited and data dependent.

The 7,000 level above continues to push the market back down, as we are working through the earnings season.

EUR/USD trades in a narrow channel above 1.1900 in the European session on Wednesday after posting marginal losses on Tuesday. The January employment report from the United States (US) could ramp up market volatility in the second half of the day and trigger the next directional action in the pair.

The AUD/USD exchange rate soared to the highest level since February 2023 as the US Dollar Index retreat gained steam.

The BTC/USD pair remained under intense pressure on Tuesday morning as the recent retreat resumed. Bitcoin dropped to $68,700, inside the range it has remained in the past few days, and much lower than the all-time high of 126,200.

The AUD/USD pair attracts fresh buyers following the previous day’s modest decline and rallies to levels beyond the 0.7100 mark, or a fresh high since February 2023, on Wednesday.