DAILY TECHNICAL ANALYSIS FOR FEBRUARY 03, 2022
Current level – 1.1297
The attempt for a violation of the resistance zone at 1.1320 was not successful and the euro erased a small part of its recent gains against the dollar. During the early hours of today`s trading, the pair is holding around the current level at 1.1300, and if the bulls re-enter the market, then a new successful attack on the mentioned resistance could easily continue the recovery towards the target at 1.1362. If the bears prevail, then a violation of the support at 1.1287, followed by a breach of the lower zone at 1.1235, could deepen the decline and put an end to the corrective move. Today, an increase in market volatility can be expected around the announcement of the European Central Bank interest rate decision (today; 12:45 GMT) and during Lagard’s press-conference shortly after that.
Current level – 114.42
The U.S. dollar extended its losses against the yen, but at the time of writing the analysis, the pair has calmed down around the current level at 114.42. The expectations are for the downward movement to continue, with a test of the support zone at 114.00 being the most probable scenario. A breach of the mentioned level could easily lead to new losses and would strengthen the negative expectations for the future path of the Ninja. The first target for the bulls can be found at the level of 114.63, followed by the resistance at 115.00.
Current level – 1.3553
The test of the resistance zone at 1.3571 was not successful, and during the early hours of today`s trading, the pair is hovering under the mentioned level. If the bears prevail, then the corrective move should be limited to the support zone at 1.3444. If the bulls manage to gain enough momentum to overcome the zone at 1.3571, then the Cable will likely rally towards the resistance at 1.3651. The announcement of the Bank of England interest rate decision (today; 12:00 GMT) will most likely lead to an increase in volatility, especially given the fact that the main interest rate is expected to be increased by 25 bps.
Gold price attempts positively
Gold price shows new positive trades, but it faces solid resistance formed by the EMA50, waiting to surpass this barrier to ease the mission of heading towards our next positive station at 1825.15.
Therefore, our bullish overview will remain valid and active for the upcoming period, reminding you that holding above 1797.00 is important to achieve the waited targets.
The expected trading range for today is between 1790.00 support and 1825.00 resistance.
The expected trend for today: Bullish
Source: Technical analysis