DAILY TECHNICAL ANALYSIS FOR AUGUST 16, 2022petar skakalov
Current level – 1.0155
The European common currency lost quite a bit of ground against the U.S. dollar, and during the early hours of today`s trading, the price tested the support at 1.0158. A confirmed breach for the bears could easily deepen the decline towards the next target at 1.0119, where a violation could lead to new losses and could strengthen the negative expectations for the future path of the pair. If the buyers enter the market instead, then their first resistance can be found at 1.0276, followed by the upper zone at 1.0309.
Current level – 133.24
Neither the bulls nor the bears managed to gain enough momentum and trading remained in the zone between 132.56 and 133.29. A breach of the lower border, followed by a violation of the next target at 131.71, could easily mark the current move as corrective and could pave the way for a test of the low at 130.56. If the buyers prevail instead, then a new successful attack on the zone at 133.29 and a breach of the resistance at 134.33 could result in a continuous recovery towards the important level at 135.38.
Current level – 1.2036
The Sterling continued to lose ground against the dollar, and after the breach of the support at 1.2063, the pair consolidated around the current price at 1.2036. The current expectations are for a test of the level at 1.2020, and if successful, a deepening of the decline could easily head the price towards the support at 1.1924. If the bearish momentum fades and buyers take control instead, then a violation of the mentioned zone at 1.2063, which is now acting as resistance, could lead to an appreciation towards the next target at 1.2134. A violation of the upper zone at 1.2183 could result in a change in the current sentiment and could prime the Cable for a new attack on the local high at 1.2246.
Gold price under the negative pressure
Gold price faced strong negative pressure yesterday to test the key support 1779.25, noticing that the price kept its stability above it, accompanied by witnessing clear positive signals now through stochastic, waiting to motivate the price to resume the positive trades to visit 1802.80 initially.
Therefore, our overall bullish overview will remain valid, reminding you that it is important to hold above 1779.25 to achieve the suggested targets.
The expected trading range for today is between 1770.00 support and 1800.00 resistance.
The expected trend for today: Bullish
Source: Technical analysis