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Daily Technical analysis for July 26, 2021

EUR/USD

Current level – 1.1768

Last week, neither the bears nor the bulls gained enough momentum to successfully violate either border of the range between 1.1759 and 1.1805. During the early hours of today`s trading, the pair is hovering just above the level at 1.1759 and a new test is the most probable scenario. A breach here would strengthen the negative expectations for the future path of the EUR/USD and would easily deepen the sell-off towards the support level at 1.1717. The first target for the buyers is still the level of 1.1805, followed by the resistance zone at 1.1850. This week, investors’ attention will be focused on the consumer confidence data for the U.S. (Tuesday; 14:00 GMT), the announcement of the Fed’s Interest Rate Decision (Wednesday; 18:00 GMT), and the data for the unemployment claims (Thursday; 12:30 GMT).

USD/JPY

Current level –  110.37

The recovery of the greenback against the yen continues and the currency pair has breached the resistance zone at 110.30. If the bulls continue to prevail, a successful test of the important target at 110.60 would easily pave the way for USD/JPY towards the level of 111.12 and would strengthen the positive expectations of the market participants. In the other direction, if the currency pair does not hold its positions above the mentioned level at 110.30 and a corrective phase develops, the drop should be limited to the support level at 109.72.

GBP/USD

Current level – 1.3753

The Sterling recovered some of its recent losses against the dollar and the Cable is consolidating above the resistance zone at 1.3739. A successful violation of the next target at 1.3800 could easily lead to new gains and would help the bulls return the pair back to the range between 1.3800 and 1.3894. If the bears re-enter the market, we could witness a sell-off towards the support zone at 1.3665, where a breach could end the positive retracement phase and target the lows at 1.3570.

Gold price faces solid support

Gold price finds difficulty to break 1797.00 level, to test the EMA50 again, which forms continuous negative pressure on the price, waiting to resume the negative trades to break the mentioned level and open the way to head towards 1770.00.

Therefore, the bearish trend scenario will remain valid and active, noting that breaching 1825.15 will stop the expected decline and lead the price to turn to rise.

The expected trading range for today is between 1775.00 support and 1820.00 resistance.

The expected trend for today: Bearish

Source: Technical analysis

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