DAILY TECHNICAL ANALYSIS FOR JANUARY 05, 2023petar skakalov
Current level – 1.0606
After the massive selloff since the beginning of the week, the single European currency managed to recover half of what it lost against the U.S. dollar and entered a consolidation phase. The important resistance at 1.0657 was not reached during the past session, but the support at 1.0575 was not tested by the bears either. If the bulls prevail and break through the levels 1.0657 and 1.0695, it is very likely that nothing will be stopping them until the 1.0786 resistance available on the longer time frames. It is more important for the bears to overcome the first and second support levels at 1.0575 and 1.0518. If they succeed, we’ll likely see them on the market for longer. Today, the important U.S. economic data that should lead to an uptick in volatility is the ADP Nonfarm Employment Change (13:15 GMT) and Initial Jobless Claims (13:30 GMT).
Current level – 132.22
The past session was mixed for the yen. Initially, the bears tried to hold the rate below the support at 130.53, but this proved unsuccessful and the yen began to lose ground against the dollar, heading for the resistance at 131.47, which was overcome easily. A possible break of the next important resistance at 133.16 would give the bulls an even more serious advantage, but if this does not happen and it is not overcome, the bears will not fail to attack the support at 131.47 again. This would open their way to the next two support zones at 130.53 and 129.52 where the bulls should stop them.
Current level – 1.2030
In the past session, the Cable’s range movement continued between the resistance at 1.2115 and the support at 1.2020. A likely signal that buyers may return to the market would be an attempt to test and break the resistance at 1.2115, which at the moment of writing this analysis has not happened yet. In order to observe the downward movement, it is necessary for the bears to direct the rate to the support zones at 1.2020 and 1.1893.
Midday update for Gold
Gold price provides negative trades to test the minor bullish channel’s support line, noticing that stochastic continues to gain the positive momentum, waiting to resume the bullish wave that targets 1900.00 as a next main station, taking into consideration that breaking 1838.00 will press on the price to test the key support 1820.50 before any new attempt to rise.
The expected trading range for today is between 1840.00 support and 1875.00 resistance.
The expected trend for today: Bullish
Source: Technical analysis