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Daily Technical analysis for July 22, 2021

EUR/USD

Current level – 1.1794

The depreciation of the common European currency against the dollar came to a halt slightly below the support zone of 1.1773 and, at the time of writing the analysis, the pair is headed towards a test of the resistance level of 1.1805. The short-term forecast is for the pair to enter into a consolidation phase within the range between 1.1773-1.1849 before either the buyers or the sellers take control. A spike in volatility is expected around the announcement of the European Central Bank interest rate decision (11:45 GMT) and during the press conference following the announcement (12:30 GMT).

USD/JPY

Current level –  110.14

During yesterday’s trading session, the dollar managed to partially recover against the yen, but the test of the resistance level of 110.30 was unsuccessful and the short-term expectations are for the pair to trade in a consolidation phase above the support level of 109.72. The main resistance level remains the aforementioned level of 110.30.

GBP/USD

Current level – 1.3703

The pound found support at the level of 1.3570 and stopped depreciating against the dollar. At the time of writing, the pair is found in a corrective phase, which is expected to be limited by the resistance level of 1.3800. The most likely scenario, after the corrective phase ends, is for the pair to retest the support level of 1.3570.

Gold price awaits the break – Analysis

Gold price tests 1797.00 level, and it needs to break this level to confirm opening the way to head towards our next negative target that reaches 1770.00, as the price completed forming double top pattern that its signs appear on the chart.

Therefore, our bearish overivew will remain valid and active for the upcoming period conditioned by the price stability below 1825.15, noting that moving below the EMA50 supports the expected decline.

The expected trading range for today is between 1775.00 support and 1815.00 resistance.

The expected trend for today: Bearish

Source: Technical analysis

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