The euro struggled to build momentum as optimism from regional activity faded against firm dollar sentiment, while the pound found steadier footing thanks to resilient factory trends and a calmer outlook for growth. The yen remained under pressure amid political messaging that tolerated currency weakness, keeping traders alert to sharp swings tied to policy remarks. Bitcoin continued to lose traction as confidence thinned, buyers stepped aside, and risk appetite failed to return despite broader market strength. Gold reversed sharply after an aggressive surge, with profit taking and rising volatility forcing participants to reassess positioning and wait for clearer direction.

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🇪🇺/🇺🇸 EUR/USD: Outlook – Euro vs U.S. Dollar

Current Market Context

• The euro remains under pressure as the U.S. dollar regains strength on renewed confidence in U.S. policy direction.
• Eurozone data has been mixed: labor markets and inflation expectations remain resilient, but manufacturing activity continues to struggle.
• Markets are increasingly sensitive to U.S. data surprises, particularly activity and inflation-related releases.
• Political clarity in the U.S. has reduced short-term uncertainty, offering temporary support to the dollar.
• Capital outflows from U.S. assets still limit sustained dollar strength, keeping EUR/USD from collapsing.

Key Factors Affecting EUR/USD

• U.S. economic momentum: Strong activity data favors the dollar and caps euro recoveries.
• Federal Reserve policy expectations: Any pushback against early rate cuts supports USD.
• ECB stance: The ECB remains cautious, with limited appetite for tightening.
• Risk sentiment: The euro struggles to attract inflows during periods of uncertainty.
• Liquidity behavior near key levels: Market reactions around support zones are becoming more decisive.

Support & Resistance Levels

• Support: 1.1835 → 1.1805 → 1.1754
• Resistance: 1.1874 → 1.1953 → 1.2050

Outlook & Bias

• EUR/USD is in a corrective phase within a broader neutral structure.
• A clean break below 1.1835 would expose the pair to deeper downside toward 1.1754.
• A firm reaction from buyers near 1.1835 could spark a recovery toward the 1.1874–1.1953 zone.

Trading Recommendations

• Buy setups:
  • Consider longs only if price shows a clear reaction from the 1.1835 area.
  • Initial targets near 1.1874, with extension potential toward 1.1953.
• Sell setups:
  • Look for short opportunities on a confirmed break below 1.1835.
  • Downside targets sit near 1.1805 and 1.1754.

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🇬🇧/🇺🇸 GBP/USD Outlook – British Pound vs U.S. Dollar

Current Market Context

• Sterling remains one of the stronger major currencies, supported by relatively stable UK economic data.
• Manufacturing activity has held above contraction levels, reinforcing confidence in the UK outlook.
• The pound has benefited from reduced exposure to U.S. asset risk as investors rebalance portfolios.
• Despite the bullish longer-term picture, the pair has entered a corrective consolidation phase.

Key Factors Affecting GBP/USD

• UK economic resilience: Manufacturing stability supports sterling.
• Dollar sentiment: Weakness driven by capital rotation favors GBP.
• Relative growth outlook: The UK appears less exposed to near-term slowdown risks than peers.
• Market positioning: Heavy long exposure raises the risk of short-term pullbacks.

Support & Resistance Levels

• Support: 1.3670 → 1.3643 → 1.3568
• Resistance: 1.3730 → 1.3787 → 1.3871 → 1.4000

Outlook & Bias

• The broader trend remains constructive, but short-term price action is corrective.
• The 1.3643–1.3670 zone is critical; holding this area keeps bullish prospects intact.
• A sustained break below 1.3643 would increase the risk of a deeper pullback.

Trading Recommendations

• Buy setups:
  • Favor buys only after clear confirmation from the 1.3643–1.3670 demand zone.
  • Targets include 1.3730 and 1.3787.
• Sell setups:
  • Shorts become attractive if price consolidates below 1.3643.
  • Downside extension could reach 1.3568.

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🇺🇸/🇯🇵 USD/JPY Outlook – U.S. Dollar vs Japanese Yen

Current Market Context

• The yen continues to weaken amid political signals favoring a softer currency.
• Japanese policymakers appear comfortable with currency depreciation to support exports.
• U.S. economic data remains the dominant short-term driver.
• Election-related uncertainty in Japan adds to volatility and reduces demand for the yen.

Key Factors Affecting USD/JPY

• Japanese fiscal outlook: Expansionary expectations weigh on the yen.
• Political messaging: Acceptance of a weaker currency encourages selling pressure.
• U.S. data surprises: Strong numbers favor upside in USD/JPY.
• Volatility ahead of elections: Traders remain cautious but biased toward selling yen rallies.

Support & Resistance Levels

• Support: 154.17 → 153.71 → 152.77
• Resistance: 154.71 → 155.62 → 157.50

Outlook & Bias

• Short-term bias favors controlled downside corrections.
• Failure to reclaim 154.71 keeps pressure toward 154.17 and below.
• Buyers are only expected to step in near deeper support zones.

Trading Recommendations

• Sell setups:
  • Consider shorts near 154.71 with targets at 154.17 and 153.71.
• Buy setups:
  • Only consider short-term buys if price stabilizes near 154.17 or 153.71.

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₿ BTC/USD Outlook – Bitcoin

Current Market Context

• Bitcoin is in a clear bear phase, posting its longest losing streak in years.
• Investor confidence has eroded sharply, with retail interest fading and institutional flows reversing.
• ETF outflows have removed a key pillar of demand.
• Bitcoin has lost its perception as a politically neutral asset, pushing investors toward alternatives.

Key Factors Affecting Bitcoin

• Monetary policy expectations: A firmer policy outlook pressures risk assets.
• Institutional positioning: ETF outflows amplify downside pressure.
• Forced liquidations: Breaches of key levels trigger cascading sell-offs.
• Sentiment collapse: Lack of buyers increases vulnerability to sharp drops.
• Capital rotation: Funds have shifted toward precious metals and cash.

Support & Resistance Levels

• Support: 75,100 → 72,100 → 68,900
• Resistance: 78,200 → 81,200 → 83,200 → 85,600

Outlook & Bias

• The medium-term trend remains decisively bearish.
• Failure to reclaim the 81,200–83,200 zone keeps downside risks dominant.
• A deeper move toward the 60,000–70,000 region remains possible.

Trading Recommendations

• Sell setups:
  • Favor rallies into resistance for short positions.
  • Targets include 72,100 and 68,900.
• Buy setups:
  • Only consider speculative longs if price reclaims and holds above 78,200.

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🪙 XAU/USD Outlook – Gold vs U.S. Dollar

Current Market Context

• Gold has suffered an aggressive liquidation following record highs.
• Profit-taking, rising volatility, and a stronger dollar triggered a sharp reversal.
• Speculative excess, particularly from overseas buyers, has unwound rapidly.
• Liquidity conditions remain fragile, increasing the risk of further swings.

Key Factors Affecting Gold

• Policy uncertainty: A clearer U.S. monetary path reduced hedging demand.
• Dollar strength: Limits gold’s recovery potential.
• Speculative positioning: Rapid exits amplify downside moves.
• Geopolitical headlines: Still relevant but no longer enough to support prices alone.

Support & Resistance Levels

• Support: 4400 → 4268
• Resistance: 4605 → 4681 → 4948

Outlook & Bias

• The trend is firmly bearish in the short term.
• Attempts to buy dips remain risky due to unstable liquidity.
• A corrective rebound is possible but timing remains uncertain.

Trading Recommendations

• Primary strategy:
  • Stay sidelined until volatility stabilizes.
• Aggressive traders:
  • Shorts may be considered below 4605 with tight risk control.

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📊 Summary Table: Forex Analysis As of February 3, 2026

Asset	Trend Bias	Key Support Zone	Key Resistance Zone	Preferred Strategy
🇪🇺 EUR/USD	Neutral–Corrective	1.1835 – 1.1754	1.1874 – 1.1953	Trade reactions at support
🇬🇧 GBP/USD	Constructive	1.3643 – 1.3670	1.3787 – 1.4000	Buy dips with confirmation
🇯🇵 USD/JPY	Bearish Intraday	154.17 – 153.71	154.71 – 155.62	Sell rallies
₿ BTC/USD	Bearish	75,100 – 68,900	81,200 – 85,600	Sell rallies, cautious buys
🪙 XAU/USD	Bearish	4400 – 4268	4605 – 4948	Stay out or sell strength

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