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Daily Technical analysis for July 05, 2021

EUR/USD

Current level – 1.1858

The bears did not gain enough momentum to successfully violate the support zone at 1.1820. A breach coming from the bears at this level would strengthen the negative expectations for the future path of the pair towards a test of the support at 1.1760. If the buyers re-enter the market, the first resistance would lie at the level of 1.1904. If it gets breached, a rally towards the upper zone (between 1.1955 and 1.2129) is a highly probable scenario. This week, investors’ focus will mainly fall on the announcement of the ISM non-manufacturing data (Tuesday; 13:45 GMT).

USD/JPY

Current level –  111.12

At the time of writing this analysis, the downward movement from the last trading session was limited by the support level at 111.02. In case the USD/JPY continues its upward movement, it may be expected that the pair will test the resistance at 111.61. If the bears enter the market once again and successfully breach the support at 111.02, then the pair will most probably consolidate in the range between 110.43 – 111.02.

GBP/USD

Current level – 1.3824

During Friday’s trading session, we witnessed a depreciation of the U.S. dollar against the sterling after the support zone at 1.3732 was not breached. This could be considered as a corrective move and only a breach of this level would confirm the negative expectation of market participants and head the pair towards the next support at 1.3660. In the upward direction, the main resistance remains the level of 1.3870.

Gold price attempts to recover

Gold price achieved intraday gains in the previous sessions to surpass the EMA50 and reach the thresholds of 1800.00 level, noticing that the price returns to the sideways track that its lines represented by the mentioned resistance and 1770.00 support, which makes us suggest witnessing sideways trades until the price manages to surpass one of the mentioned levels.

Note that breaching the mentioned resistance will lead the price to achieve additional gains that reach 1825.15 followed by 1860.00, while breaking the support will press on the price to resume the bearish trend that its next target located at 1734.10.

The expected trading range for today is between 1765.00 support and 1805.00 resistance.

The expected trend for today: Sideways

Source: Technical analysis

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