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05Jul

DAILY TECHNICAL ANALYSIS FOR JULY 05, 2022

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EUR/USD

Current level – 1.0431

Yesterday, the euro ended with a slight decline against the dollar, and in the early hours of today, the pair scored some gains. After a failed attempt to breach 1.0396 at the end of last week, it is possible that the bulls could try to attack the zone at 1.0460 – 1.0490. It seems that the bulls are feeling hesitant, and for the moment, they are more likely to defend their positions than to be on the offence. The market most likely expects a catalyst, and until then, trading may continue in the range between the 1.0396 support and the 1.0535 resistance. Sentiment remains negative, and a change would occur only if prices breach and hold above 1.0600. If the annual support at 1.0360 is also breached, then more serious declines targeting 1.0200, or even parity with the dollar, can be expected. Today, a series of data on business activity in the services sector for the eurozone countries would possibly boost market activity.

USD/JPY

Current level – 136.29

Despite the low activity yesterday, the pair ended in green territory and the trend carried over into the early hours of today. The bulls are once again about to attack the highs at around 136.70, with the first obstacle for them being the resistance at 136.30. A breach of the zone at 136.70 would unlock the possibility of a rally targeting 138.50. In an alternative scenario and another failure of the bulls at breaching this resistance, it is very likely that the market will continue to trade in a range with a lower boundary of 134.77 and an upper one of 136.70.

GBP/USD

Current level – 1.2113

The Cable could not hold onto its gains and yesterday’s session ended largely unchanged. The key area at 1.2170 was breached and is currently the first confirmed resistance. If prices fail to return above 1.2170, then another wave of sell-offs can be expected, with a breach of 1.1988 also not being excluded. First daily support is the level of 1.2100, but the zone is likely to prove unreliable. If the decline towards 1.1980 is interpreted as a test, then a more serious and prolonged bearish pressure can be expected. Sentiment remains negative and a change would occur only if prices remain above 1.2170.

Gold price within tight track

Gold price didn’t show any strong move since yesterday, to hover around 1810.00 level, thus, no change to the expected bearish trend scenario on the intraday and short term basis, which get continuous support by the EMA50, waiting to achieve our negative targets that start at 1780.25 and extend to 1750.00 after breaking the previous level.

Note that breaching 1818.00 will stop the negative scenario and push the price to visit 1850.00 areas before any new negative target.

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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