DAILY TECHNICAL ANALYSIS FOR AUGUST 09, 2022petar skakalov
Current level – 1.0193
The first day of the week passed calmly for the European currency. We saw a slight decline in the early hours of the day, but after the opening of the European session, we saw trading activity ramp up around the 1.0160 support, after which the currency pair began a slow and painful rise. In the first hours of the European session, we saw an upside surge, which was then corrected, but later in the day, the euro managed to reach a daily high of 1.0221, at which point the gains were capped. Today, there is a lack of data that could potentially help the pair to sustain its growth. For now, the pair remains locked in a range and we could talk about a trend only after a confirmed breach of either border of the range.
Current level – 134.99
Тhe Ninja was in low volatility territory on Monday. The day started calmly, with no big moves even at the opening of the European session. At the U.S. open, however, the dollar extended its decline and we saw the pair bouncing off the 134.40 support and managing to end the day at about 50 pips higher than the mentioned key level. In the early hours of today, we saw the release of a set of macroeconomic data, but so far there has been no reaction to it on behalf of traders. Whether the dollar will be able to recover against the yen remains to be seen in the coming days. However, if the dollar performs poorly, then a further decline in the currency pair is not excluded.
Current level – 1.2076
Monday was a choppy day for the Cable. Initially starting with a slight rise, the opening of the London stock exchange fuelled it further and the pair reached the resistance at 1.2134, from which it entered a downwards spiral and erased all of its gains by the end of the day. In doing so, the day ended at almost the same values as it had started. Today, there is a lack of macroeconomic data that is expected to give the currency pair a clear direction. Whether the GBP/USD will be able to secure its long-term recovery will depend on the strength of the dollar. If it continues to be weak, then this will allow the sterling to seek new highs, but if we see a strengthened U.S. currency, then this could lead to a prolonged decline in the GBP/USD.
Gold price resumes the rise
Gold price managed to breach 1779.25 level and hold above it, which supports the continuation of the expected bullish trend for the upcoming period, paving the way to head towards 1802.80 that represents our next target, noting that breaching this level will extend the bullish wave to reach 1831.95 as a next main station.
Therefore, the bullish trend scenario will remain valid and active, supported by the EMA50, noting that the continuation of the bullish wave requires holding above 1779.25 and the most important above 1755.70.
The expected trading range for today is between 1770.00 support and 1805.00 resistance.
The expected trend for today: Bullish
Source: Technical analysis