DAILY TECHNICAL ANALYSIS FOR APRIL 29, 2022petar skakalov
Current level – 1.0498
The day for the euro was defined by a range-bound movement. At the beginning of the European session, we monitored a slight gain towards 1.0565 in favour of the bulls, but the German CPI data, which came out at 12:00 GMT, erased these gains and the pair hit the daily bottom at around 1.0480. Germany’s GDP data release is expected today at 07:00 GMT, and Iif the growth forecast exceeds the markets’ expectations, then we could once more see prices in the single European currency rising towards 1.0653. However, if the data fails to live up to the current expectations, then the probability of a move below the current bottom at 1.0480 will increase.
Current level – 130.84
The day started with a strong movement for the dollar against the yen, resulting in a breach of the previous resistance at 130.25. Following this breach, at noon the pair slowed its growth and ended the day with a new daily and weekly high of 131.23. The bulls’ attack came after the announced unchanged policy of the BOJ yesterday, which led to a serious decline in the yen. On Friday, the Japanese celebrate the birth of Emperor Showa and it is an official non-working day, which may further weaken the yen due to the lack of Japanese banks in the market. A rise above 131.23 is more likely, with expectations of reaching 133.00, but it is possible that the momentum will slow down and the pair might enter a range between 130.25 and 131.25.
Current level – 1.2457
The sterling started to rise at the beginning of the session to its daily peak of 1.2570, but then turned around and continued its downward trend by hitting a new daily and weekly bottom of 1.2410 – values that we have not seen since the fall of 2020. The lack of macroeconomic data, together with the actions taken by the British government to support Ukraine, both create the perfect storm for the pound’s decline. There is not data economic data scheduled for today which could fuel a move up, which means that a deepening below 1.2410 is more likely, with a possible new bottom around the weekly support of 1.2300. However, scenarios for the trend’s slowdown should not be ruled out against the background of a 600-pip weekly decline.
The EURUSD confirms the break
The EURUSD pair managed to confirm breaking 1.0500 level and rallied bearishly to approach our extended target at 1.0450, reinforcing the expectations of continuing the bearish trend, noting that we expect extending the bearish wave towards 1.0325 areas.
Therefore, the bearish trend will remain dominant in the upcoming sessions, noting that the continuation of the bearish wave requires holding below 1.0530 and the most important below 1.0600.
The expected trading range for today is between 1.0400 support and 1.0560 resistance.
The expected trend for today: Bearish