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DAILY TECHNICAL ANALYSIS FOR JULY 07, 2022

EUR/USD

Current level – 1.0199

The single European currency continues to lose ground against the U.S. dollar, with the bears breaching the support at 1.0237 in the past trading session and reaching levels last recorded two decades ago. The mentioned support level now acts as the first important resistance. It is possible that the bulls will try to test the mentioned level, but this could be seen as a corrective move ushering the bears’ return to the market. The next important support for the bears is the level at 1.0100. Today, the ADP non-farm employment change data (12:30 GMT), as well as statements from two FED board members (17:00 GMT), will most likely have an impact on the volatility of the currency pair, but investors will be extremely focused on the announcement of the non-farm payrolls change for the U.S., as well as the unemployment rate change for the U.S., both of which are scheduled for tomorrow afternoon.

USD/JPY

Current level – 135.63

The currency pair started forming a range in the narrow channel between 134.77 – 136.70, after neither the bulls, nor the bears managed to gain momentum for a third consecutive week. An entirely possible long-term scenario is for the dollar to continue to appreciate against the Japanese yen due to the expected continued tightening of the U.S. monetary policy. In a positive direction, the first significant resistance for investors is the level at 136.70, and in the negative direction, the level that would represent the main obstacle for the bears is the lower limit of the range.

GBP/USD

Current level – 1.1940

As with the other currency pairs, the British pound continued to lose ground against the U.S. dollar, consolidating around the 1.1930 support level at the time of writing. It is possible to witness a corrective move by the bulls culminating in an attack on the important resistance at 1.2000. However, the negative sentiment for the pound – for a deepening of the sell-off and an attack on the higher time frame support levels at 1.1700 – remains relevant.

Gold price attempts to recover

Gold price shows some slight bullish bias now, affected by stochastic positivity, and it might head to test the first key resistance 1765.00 before turning back to decline again.

In general, we will continue to suggest the bearish trend for the upcoming period supported by the negative pressure formed by the EMA50, conditioned by the price stability below the mentioned resistance and below 1780.25, reminding you that we are waiting to head towards 1700.00 as a next main target.

The expected trading range for today is between 1720.00 support and 1760.00 resistance.

The expected trend for today: Bearish

Source: Technical analysis

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