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18Jul

DAILY TECHNICAL ANALYSIS FOR JULY 18, 2022

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EUR/USD

Current level – 1.0095

After the European common currency reached parity with the dollar once more, the psychological level withheld the bearish attack and the bulls took control. The pair breached the resistance at 1.0071, and during the early hours of today, the EUR/USD is heading for a test of the zone at 1.0115. If the buyers manage to remain in control and overcome the aforementioned zone, then the pair will most likely attack the resistance at 1.0186. However, only a violation of the resistance at 1.0237 could lead to a change in the current sentiment of market participants. In the more likely scenario, in which the bears prevail and again take the rate of the euro against the greenback below 1.0071, then the expectations are for a new attack on the major zone at 1.0000, marking the current upside move as corrective and could easily lead to future losses for the euro against the dollar. This week, traders will focus their attention on the European Central Bank interest rate decision (Thursday; 12:15 GMT) and the expected U.S. data on initial jobless claims, later on the same day at 12:30 GMT.

USD/JPY

Current level – 138.04

The bullish momentum faded and the rally was limited by the resistance at 139.21. The dollar erased some of its recent gains against the yen, and during the early hours of today`s trading, the pair is holding positions above the support at 137.84. А violation of this zone, followed by a breach of the one at 137.42, could encourage the bears to continue with their attack and could head the USD/JPY towards the major level at 136.69. If the buyers re-enter the market instead, then a new successful attack on the high at 139.21 could easily continue the rally for the Ninja towards the levels at around 140.00.

GBP/USD

Current level – 1.1896

Last week, the sellers failed to breach the support at 1.1804 and the pound slightly appreciated against the dollar. The pair bounced back above the resistance zone at 1.1804, and at the time of writing the analysis, the price is headed for a test of the next level at 1.1912. Successful violation here could easily continue the recovery and could pave the way for an attempt at breaching the upper zone at 1.1962. If the bears take control, then their first target can be found at the level of 1.1871, which is now acting as support. A new successful attack on the lows at 1.1804 could deepen the sell-off and could strengthen the negative expectations for the future path of the Cable.

Midday update for Gold

Gold price attempts to breach the bearish channel’s resistance, reinforcing the expectations of continuing the bullish trend in the upcoming sessions, paving the way to achieve gains that start by visiting 1735.25 followed by 1760.00 after breaching the previous level, noting that it is important to build support base above 1720.00 to reinforce the positive overview.

The expected trading range for today is between 1700.00 support and 1735.00 resistance.

The expected trend for today: Bullish

Source: Technical analysis

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