fbpx
04Jan

DAILY TECHNICAL ANALYSIS FOR JANUARY 04, 2023

703 Comments 0

EUR/USD

Current level – 1.0566

During yesterday’s session, we witnessed a strong bearish presence that led to an impulsive downward movement of approximately a figure that sent the pair towards a test of the psychological level at 1.0500. It appeared to be a strong barrier for the sellers to overcome and EUR/USD bounced back reaching the resistance at 1.0575. The pressure of the bears was not enough to sustain the downward movement towards the next support at 1.0460. However, the newly formed resistance at 1.0575 would most probably be tested. A successful breach of this level would suggest that the breakthrough was false and the pair would most probably regain its losses and return to the range in the interval 1.0575 – 1.0657. Only a confirmed breach of the support at 1.0520 may be considered as a signal for stronger sell-offs with targets at 1.0460.

USD/JPY

Current level – 130.61

The slight downward movement that began at the end of last year was limited to the support at 129.50 and a correction took place leading the pair towards the resistance at 131.47. However, in the early hours of today’s trading session the mentioned resistance seems to resist the bull’s pressure and the forecasts for today’s session are for a possible test of the support at 129.52. A successful breach would easily pave the way for the pair towards the support at 128.25. In the opposite direction, only a confirmed breach of the resistance at 131.47 would suggest a bulls’ attack towards the resistance at 133.16.

GBP/USD

Current level – 1.1991

The currency pair could not overcome the psychological level at 1.1900 and, at the time of writing this analysis, the pair is locked in the range 1.1900 – 1.2000. If the bulls take control over the market and manage to violate the upper border of the range, we may expect the corrective move to get stronger, leading the pair towards the resistance at 1.2110. However, the market sentiments remain negative and the pair would most probably continue the downward movement towards the support at 1.1780. This scenario, however, could be realised only in case of a confirmed breach of the support at 1.1890.

Gold price resumes the rise

Gold price returned to rise after the decline that it witnessed in the previous sessions, to approach 1850.00 level, waiting for more bullish bias to head towards our next main target that reaches 1900.00.

Therefore, we will continue to suggest the bullish trend for the upcoming period, organized inside the bullish channel that appears on the chart, supported by the EMA50, noting that the continuation of the bullish wave requires holding above 1824.50 and the most important above 1815.75.

The expected trading range for today is between 1830.00 support and 1865.00 resistance.

The expected trend for today: Bullish

Source: Technical analysis

Share this post

Comments (703)