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Daily Technical analysis for July 19, 2021

EUR/USD

Current level – 1.1799

The Greenback is holding firmly against the euro and the other global currencies. The possibility of interest rates in the U.S. increasing after the higher-than-expected inflation report strengthened the bearish sentiment for the EUR/USD. At the time of the analysis, the market is consolidating and the bears are expected to re-test the 1.1770 support. If successful, the next targets for them could be the support zones at 1.1690 and at 1.1600. The most significant economic events for this week are scheduled for its second half (Thursday), when the ECB will announce the new interest rates (11:45 GMT) and will give a press conference (12:30 GMT).

USD/JPY

Current level –  109.89

The bears seem to be easing their pressure after initially failing to breach the support at 109.72. It is possible for the market to continue to trade in the range between 109.72 and the resistance at 110.60. If the sell-off resumes and the area between 109.53 and 109.72 is breached, the next target for sellers could be 109.20 or even 108.55.

GBP/USD

Current level – 1.3752

The currency pair is found just above the 1.3740 support and it is expected to be violated after it endured several previous tests. If the support does not last, the next target for the bears may be the area at around 1.3670. A pullback move towards the resistance of 1.3800 is not excluded, but a change in market sentiment would only occur if prices remain above 1.3857.

Gold price attempts to consolidate

Gold price ended last Friday below 1825.15, to hint heading to decline on the intraday basis, but we notice that the intraday bullish channel’s support line attempts to protect the price from suffering more losses, supported by stochastic and the EMA50 positivity.

Therefore, the contradiction between the technical factors makes us prefer staying aside until we get clearer signal for the next trend, noting that the continuation of the negative pressure and breaking 1810.00 will push the price to achieve more decline and test 1797.00 level initially, while breaching 1825.15 represents the key to reactivate the positive scenario that its next target located at 1860.00.

The expected trading range for today is between 1795.00 support and 1830.00 resistance.

The expected trend for today: Neutral

Source: Technical analysis

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