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DAILY TECHNICAL ANALYSIS FOR JULY 04, 2022

EUR/USD

Current level – 1.0422

Friday’s session was quite volatile for the EUR/USD, and in the early hours of today, the trend took a downward turn. There was a brief struggle between traders around the session open in Europe, but in the end the bears prevailed and the currency pair continued to plummet. The bottom for the day and the week was 1.0365, where the pair managed to find support and close the last day of the week at levels of around 1.0430. Today is Independence Day in the U.S. and volatility is expected to remain low as it is a public holiday. Euro data on today’s macroeconomic calendar will show the German trade balance (6:00 GMT), as well as manufacturing inflation levels (9:00 GMT), but this Friday all eyes will be on the U.S. labour force data. For now, the 1.0360 level is once more defending itself, but whether this is the last bottom for the EUR/USD will depend on what data we will get on the last day of this week and how the market will respond to it.

USD/JPY

Current level – 135.25

After failing to find support at around 135.50 and reach a new high, the correction deepened, and on Friday, the pair managed to fall back to around 134.65. At the time of writing, the level at 135.43 is acting as the first major resistance, which has to be overcome in order for the rally to continue. .There is no yen or dollar data on the macroeconomic calendar today, and so once again all eyes will be on the NFP data on Friday this week. If the dollar comes out on top again, then the previous high of 136.98 can be easily breached, but if we instead see wavering sentiment, then the currency pair could deepen its correction.

GBP/USD

Current level – 1.2098

Friday’s session was extremely volatile for the sterling as we saw sharp movements of around 200 pips in both directions. It all started with a strong decline that managed to bring the currency pair to levels below 1.2000, but not for long as the bulls attacked these levels shortly after and we saw a recovery of the decline, with the session ending near 1.2100. Whether this upward move is enough to prompt traders to continue buying will depend on the strength of the dollar. Support from U.S. banks is lacking today as the nation celebrates its Independence Day, but on Tuesday we can expect more information from the macroeconomic calendar, which could define where the pair is headed in the long term. The Cable will also be influenced by the U.S. labour data to come out this Friday at 12:30 GMT.

Gold price suffers clear losses 

Gold price traded with strong negativity in the previous sessions to reach few pips away from our waited target at 1780.25, affected by stochastic positivity to show some bullish bias, noticing that the indicator lost its positive momentum clearly, while the EMA50 forms continuous negative pressure against the price.

Therefore, we believe that the chances valid to resume the bearish bias in the upcoming sessions, noting that breaking 1780.25 will push the price towards 1750.00 areas as a next main station, while breaching 1819.00 will push the price to achieve additional gains that reach 1850.00 before any new attempt to decline.

The expected trading range for today is between 1780.00 support and 1825.00 resistance.

The expected trend for today: Bearish

Source: Technical analysis

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