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DAILY TECHNICAL ANALYSIS FOR AUGUST 10, 2022

EUR/USD

Current level – 1.0210

The pair continues tо consolidate since the second half of July. The main support remains the area between 1.0120 – 1.0150, and the main resistance is the wall at 1.0270. After such a long period of indecision, prices can be expected to break the range in either direction and it seems that the market currently needs a catalyst in order to find a clear direction. That could be the U.S. consumer price index scheduled for today at 12:30 GMT. A breach of the 1.0120 support would open the door to a new test of 1.0000. Provided that the U.S. inflation persists and the Fed continues to pursue its aggressive interest rate policy, an attack towards 0.9700 in the medium term is a possible scenario.

USD/JPY

Current level – 135.10

The last few days have been uncharacteristically calm for the USD/JPY, with prices consolidating between the 134.40 support and the 135.35 resistance. Expectations remain aligned with the direction of the main trend – for a breach of 135.35 and an attack on the next zone at 137.40. Another drop towards 134.40 is not ruled out, as such a scenario would allow the bulls to re-enter the market. If this zone fails, then the next support levels for the bears are 133.45 and 132.50.

GBP/USD

Current level – 1.2074

The Cable ended the session largely unchanged and failed to hold onto the day’s gains. For now, the bulls are finding support above 1.2020 and 1.2060, but further declines towards the 1.2020 zone are also not excluded. On the higher time frames, the downtrend has lost its momentum, but it seems that risk appetite is also lacking among market participants. A more likely scenario remains a continuation of the downtrend, while a breach of 1.2020 would put 1.1920 on the map for the bears.

Gold price approaches the first target

Gold price touched 1800.00$ barrier yesterday, showing sideways fluctuation near the intraday bullish channel’s support line, noticing that the EMA50 continues to support the price from below, waiting to resume the bullish bias to breach 1802.80 and open the way to head towards 1831.95.

Therefore, we will continue to suggest the bullish trend for the upcoming period, noting that breaking 1779.25 might press on the price to decline and test 1755.70 areas before any new attempt to rise.

The expected trading range for today is between 1780.00 support and 1810.00 resistance.

The expected trend for today: Bullish

Source: Technical analysis

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