Daily Technical analysis for July 29, 2021petar skakalov
Current level – 1.1845
The Federal Reserve left the rates unchanged and, after a rather lack-lustre press conference which did not spark a lot of volatility, the bulls continued to prevail. The greenback lost some ground against the common european currency and, during the early hours of today`s trading, the pair is hovering under the resistance zone at 1.1849 as a direct result of the Fed signalling for a continuation of its dovish monetary policy. A Successful breach of the mentioned level could continue the rally and would easily pave the way for a test of the next target at 1.1879. If the bears enter the market, we could witness a move towards the first support at 1.1805 which, if violated, could deepen the sell-off towards the major support at 1.1759.
Current level – 109.69
The short-lived rally was limited to the resistance zone of 110.09 and the yen regained some of its positions against the dollar as a result of the Fed’s forward guidance and interest rate decision. The expectations are for a test of the support zone at 109.57 which, if successful, should lead to a move towards the local lows at around 109.30. This, in turn, could easily strengthen the negative expectations for the future path of the USD/JPY. The first target for the bulls is still the mentioned resistance level at 110.09, followed by the one at 110.30.
Current level – 1.3905
The recovery for the Cable continues and, during the yearly hours of today, the pair tested the major resistance level at 1.3900. A confirmation of the breach would easily lead to new gains for the sterling against the dollar and would head the GBP/USD towards the level at 1.3970. If the bulls lose momentum, the corrective phase should be limited to the first support level at 1.3800.
Gold price attempts to recover
Gold price provides clear positive trades to head towards potential test to the key resistance 1825.15, to move between this resistance and 1797.00 support, which makes us suggest witnessing sideways trades between these levels until the price manages to breach one of them and detect the next destination clearly.
Note that the continuation fo the rise and breaching the mentioned resistance will lead the price to achieve additional gains that reach 1860.00, while breaking the support represents the key to continue the bearish correction that its next target located at 1770.00.
The expected trading range for today is between 1795.00 support and 1835.00 resistance.
The expected trend for today: Sideways
Source: Technical analysis