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DAILY TECHNICAL ANALYSIS FOR AUGUST 03, 2022

EUR/USD

Current level – 1.0163

After reaching the support at 1.0293 in the early hours of yesterday, the currency pair started a convincing decline. The key level of 1.0232 could not hold the front and declines continued until the end of the day, breaking through all possible supports. The JOLTS data from the U.S., which we saw at 14:00 GMT, was positive for the dollar and it continued to weigh on the euro, with the EUR/USD ending the day nearly 130 pips lower – at around 1.0164. Today, there is a range of EU data due to be released between 06:00 GMT and 09:00 GMT. The results should be watched closely by traders, with pressure on the euro expected to continue to build up.

USD/JPY

Current level – 133.14

The currency pair managed to bounce back from the local low at 130.40 in the early hours of yesterday. The key level of 132.25 was breached and the gains continued. The day ended at values at around 133.15, a price that stopped the USD/JPY’s rally in its tracks. There is no data today that is expected to help the Ninja reverse the dollar’s strength, but if the data at 14:00 GMT turns out to be negative, it could help the downtrend to continue with renewed strength. Of course, if the data is ruled out as positive for the dollar, then the recovery from the mentioned bottom could continue and the market may be looking to reach values at around 134.55.

GBP/USD

Current level – 1.2164

After the beginning of the decline on the previous day from the level at 1.2291, the correction continued and briefly found support, but after reaching the resistance of 1.2236 again, the pressure continued. The day ended above the support at 1.2155, where it managed to stabilise. Today, the Cable may be affected by data from the UK on the managers’ services assessment. If it is considered positive, then the currency pair could reach towards prices above 1.2235, but if we see a disappointing report, then prices can continue their correction towards the support at around 1.2100.

Gold price tests the support base 

Gold price traded negatively on yesterday’s evening to test the key support 1755.70, and begins today with bullish bias to move away from the mentioned level, to keep the bullish trend scenario valid and active for the upcoming period, which its targets begin by breaching 1779.25 to open the way to head towards 1802.80.

The EMA50 and stochastic provide positive signals that support the suggested rise, which will remain valid conditioned by the price stability above 1755.70.

The expected trading range for today is between 1755.00 support and 1790.00 resistance.

The expected trend for today: Bullish

Source: Technical analysis

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