Spot gains stalled close to the January 17th intraday peak for the USD which was itself a test of the 50% Fibonacci retracement resistance (1.3538) derived from the USD’s Q4 sell-off.

The rejection of the low/mid-1.3500s on the intraday chart is not definitive at this point but key resistance holding again warrants attention.

More USD softness in the short run (below 1.3475) will tilt risks towards a retest of the 1.3420/1.3430 area. Below here would point to more USD losses (low/mid-1.3300s) as a consequence of the two tests of the 1.3540 zone.