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DAILY TECHNICAL ANALYSIS FOR JANUARY 27, 2023

EUR/USD

Current level – 1.0911

During the past session, the movement of the currency pair remained in a narrow range. After the bulls failed to hold above the resistance at 1.0914, the bears targeted the support at 1.0850, which was tested twice, but the price managed to hold above it. However, if the level of 1.0914 is not overcome, we are likely to witness the start of a corrective downward movement towards the support at 1.0802. However, sentiment remains positive. Today, the news which could lead to a breach of the range is the Michigan Consumer Sentiment index (13:30 GMT) which is a measure of consumer confidence, reflecting consumers’ attitudes and expectations about the overall economy. It is considered to be a leading indicator of economic activity and a high level of consumer confidence typically indicates that consumers are more likely to spend money, which can boost economic growth.The next important news is the personal income (13:30 GMT) for the U.S. which is a measure of the total income received by individuals in a given period of time. Changes in personal income can indicate changes in the labour market, such as an increase in employment or wages, which the Federal Reserve closely monitors in order to determine its monetary policy.

USD/JPY

Current level – 129.309

The past session was mixed for the yen. The bears attempted to attack the support at 129.00, but this proved unsuccessful and the yen began to lose ground against the dollar heading towards the resistance at 129.74, which was easily overcome. However, the strength of the bulls was not enough to overcome the second resistance at 130.69 and the pair headed back to the level of 129.74, which has become a support. For now, the range trend remains, but a possible breach of the important resistance at 133.16 could give some advantage to the bulls. If this does not happen, the bears will not fail to attack the support again at 129.00 and 128.11.

GBP/USD

Current level – 1.2391

For now, the resistance at 1.2433 remains a major obstacle for the pound and the bulls’ numerous attempts to overcome it have yet to succeed. Although the rate is holding tight around the mentioned level, the possibility of a correction in the negative direction should not be ruled out in case the bears take the initiative to attack the support at 1.2333 and 1.2260.

Midday update for Gold

Gold price settles below 1931.50 level, to keep the negative scenario valid for today, waiting to break 1921.60 to add more confirmation to the continuation of the expected bearish wave, which targets 1903.50 mainly, reminding you that breaching 1931.50 will push the price to return to the main bullish track again.

The expected trading range for today is between 1900.00 support and 1935.00 resistance.

The expected trend for today: Bearish

Source: Technical analysis

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