DAILY TECHNICAL ANALYSIS FOR JULY 14, 2022petar skakalov
Current level – 1.0056
On Wednesday, the day started calmly with low volumes and low volatility even around the opening of the European session. Everyone was looking forward to the June 2022 US inflation data which came out at 13:30 GMT. The macroeconomic calendar showed a sharp rise in inflation by as much as 9.1% compared to June last year, and the reaction did not wait. For the first time in 20 years, for a short time, the single European currency managed to become cheaper than the dollar. However, there the bulls found good prices to buy and we saw that the psychological level at border 1.00 was able to support the euro and it gained price and went up by 120 pips against the greenback. The downward pressure is huge and the probability is high that we will see a cheaper euro than the dollar for a longer period of time. Of course surprises today around the US manufacturing inflation data at 123:30 GMT are not out of the question and a higher correction should not be ruled out.
Current level – 137.34
The trend in the Ninja is undeniable and already in the early hours of the day on Wednesday we saw a buyout of the previous correction and an uptrend again. There was no shortage of speculation around the US CPI data, and after reaching a new monthly high of 137.84, we saw a sharp and deep correction, which, however, was again bought by the bulls in the stock market. The market was able to finish the day around the levels 137.34. Today, however, eyes are on the US Manufacturing Inflation data and the expected reaction remains to be seen at 123:30 GMT. The probability of the trend continuing is still high, but deep corrections like the one on Tuesday this week should not be ruled out.
Current level – 1.1890
Sterling was not much different from the euro due to the dollar’s strength on Wednesday. The day started with low volatility without big swing movements. After the sharp jump in the dollar due to the CPI data from the US, we saw a corresponding drop in the pound, but it failed to reach or break its weekly bottom and the bulls found good prices and managed to push the day to 1.1965. This key level played the role of resistance and Sterling ended the day around 1.1890. Today we will be watching for trader reaction around the US manufacturing inflation data due at 123:30 GMT. A jump in the dollar again is not out of the question, but if we see a negative reaction, the pound could also bounce back in a stronger correction.
Gold price gets a new negative signal
Gold price returned to decline after approaching 1745.00 level, to settle around 1730.00 level now, noticing that stochastic provides negative overlapping signal now, waiting to motivate the price to resume the bearish trend, which its next target located at 1700.00.
The EMA50 keeps supporting the suggested bearish wave, reminding you that it is important to hold below 1745.00 to achieve the waited targets.
The expected trading range for today is between 1700.00 support and 1745.00 resistance.
The expected trend for today: Bearish
Source: Technical analysis