DAILY TECHNICAL ANALYSIS FOR JANUARY 24, 2022petar skakalov
Current level – 1.1328
We still cannot witness a successful downward breach at the 1.1321 support zone as the bulls thwarted the breakout attempt during the previous trading session. At the time of writing, the currency pair is located just above the mentioned zone, and the most likely scenario is for another attempt at breaching it, followed by a test of the next significant support at 1.1279. This week, we are expecting a lot of long-awaited economic news that would affect the volatility of the currency pair. Among the most anticipated is the announcement of the Fed interest rate decision (Wednesday; 19:00 GMT), as well as the GDP data for the U.S. (Thursday; 13:30 GMT).
Current level – 113.83
The bears failed to reach the support zone at 113.50 and, at the time of writing, the bulls are trying to take control. Their first goal is expected to be a test of the resistance zone at 114.21 and a successful breach here would strengthen the appreciation of the U.S. dollar against the Japanese yen, which could lead to an additional appreciation towards the local highs at around 116.00. On the other hand, if investors lose their confidence in the U.S. dollar, influenced by this week’s decision of the U.S. Federal Reserve, then we could witness a sharp decline towards the support zone at around 110.00.
Current level – 1.3553
It seems that, during the last week, the bears managed to take full control, leading the pair towards the support area at around 1.3571, which completely disrupted the upward trend for the Cable. The consolidation phase under the mentioned support is likely to continue, with the potential to fall towards the next significant support area at 1.3483. The announcement of the Fed’s interest rate decision (Wednesday; 19:00 GMT) will be crucial for the future of the currency pair.
Gold price leans on the support base
Gold price bounced bullishly after testing the support base 1830.00, to keep the bullish trend scenario valid and active on the intraday basis, organized inside the bullish channel that appears on the chart, waiting to visit 1860.00 mainly.
The EMA50 continues to support the suggested bullish wave, which will remain valid conditioned by the price stability above 1825.15.
The expected trading range for today is between 1825.00 support and 1855.00 resistance.
The expected trend for today: Bullish
Source: Technical analysis