DAILY TECHNICAL ANALYSIS FOR FEBRUARY 02, 2022
Current level – 1.1275
The market is in a corrective phase and the bulls are about to test the resistance at around 1.1287. The movement looks aggressive and it is possible that this area could be breached and that the next resistance zones for the buyers could become the levels of 1.1320 and 1.1360. The first support for the bulls is the zone of 1.1235 and it is possible that it will be tested again. The expectations are for the formation of a small range between 1.1235 and 1.1287. The inability of the bears to plunge prices back towards 1.1170 could possibly spark a rally towards 1.1400 and 1.1480. The trend is still negative and so rallies may not be sustainable. A reversal of market sentiment can be expected if prices hold above 1.1480. Today, an increase in activity can be expected around the announcement of the change in ADP non-farm employment for the United States at 13:15 GMT.
Current level – 114.69
The expectations for a consolidation and the return of the bears above 115.01 were realised as the rally of the bulls was limited by the resistance at 115.63. The pair is currently hovering near the support zone at 114.63, and it is expected that it will be overtaken and that prices could head towards a test of the support at 114.00. A return of prices above 115.00 would break the pattern of continued downward movement. In such a scenario, a new test and a breach of 115.63 can be expected, as well as a possible attack on the high peak at around 116.16
Current level – 1.3519
The bulls overcame the resistance at 1.3444 and managed to violate the zone at 1.3520. The downward trend is disturbed and it is possible that the direction of the movement will get reversed. A new test of 1.3444 is still not ruled out, and if the zone is confirmed, then a rally with a target of 1.3570 and even 1.3650 can be expected. In case of an unsuccessful breach of 1.3520, it is possible that the market will enter a range phase with a support level of 1.3370. The BoE is expected to announce its interest rate decision on Thursday, a raise of which is expected to favour the bulls.
Gold price tests the support base
Gold price shows some bearish bias to test the key support base 1797.00, keeping its stability above it until now, accompanied by stochastic reach to the oversold areas, to support the chances of resuming the positive trades and head towards our waited positive target at 1825.15.
Therefore, we will continue to suggest the bullish trend on the intraday basis, noting that breaking 1797.00 will stop the expected rise and press on the price to turn to decline.
The expected trading range for today is between 1785.00 support and 1820.00 resistance.
The expected trend for today: Bullish
Source: Technical analysis