DAILY TECHNICAL ANALYSIS FOR JULY 07, 2023

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DAILY TECHNICAL ANALYSIS FOR JULY 07, 2023

EUR/USD

Current level – 1.0887

During yesterday’s trading session the euro made a partial recovery from its recent losses after the unsuccessful bearish attack of the support at 1.0840. At the time of writing this analysis, we are witnessing an expansion of the corrective phase. The next significant level that the bulls have to overcome in order to support the euro and reinforce the positive market sentiments for a possible test of the psychological level at 1.1000, is the important resistance at 1.0900. However, if this level resists the bulls’ pressure, we may expect the price to consolidate within the range 1.0840 – 1.0900. In an alternative scenario, if the bears prevail and violate the support at 1.0840, their next target would be the support at 1.0738. The non-farm payrolls change and unemployment data for the U.S. that will be announced today at 13:30 GMT will most likely lead to higher volatility and set the direction for the rest of the session.

USD/JPY

Current level – 143.86

The Ninja is currently in a consolidation phase, trading within a narrow range of 143.85 to 144.86. At the time of writing, the sellers are striving to gain control of the market and to push the pair towards a test of the lower border of the range. A confirmed breach of the mentioned level would pave the way for the pair towards the support at 142.93. Should the bears successfully breach this support level, it is possible for the decline to extend towards the next support at 141.30. In the upward direction, only a confirmed breach of the resistance at 144.86 would suggest a possible resumption of the overall uptrend.

GBP/USD

Current level – 1.2737

The bulls could not gain enough momentum to overcome the resistance at 1.2765 and the pair entered a consolidation phase. The market still cannot find a clear direction as market participants are expecting the announcement of the macroeconomic news mentioned in the EUR/USD analysis. In the event that the pair experiences a decline and reaches the support level at 1.2665, it could present a favourable opportunity for buyers to enter the market at lower levels, anticipating a rebound towards the resistance level at 1.2765. In the downward direction, if the bears prevail and successfully violate the support at 1.2665, their next target would be the significant support at 1.2600.

Midday update for Gold

Gold prices shows positive trades to attempt to surpass 1913.15 level, which urges caution from the upcoming trading, as holding above this level represents the key to build intraday bullish wave that its targets begin at 1929.00.

Until now, the bearish trend scenario still suggested for today conditioned by the price stability below 1913.15, supported by the negative pressure formed by the EMA50, reminding you that our next main target is located at 1873.50.

The expected trading range for today is between 1890.00 support and 1925.00 resistance.

The expected trend for today: Bearish

Source: Technical analysis