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DAILY TECHNICAL ANALYSIS FOR JULY 29, 2022

EUR/USD

Current level – 1.0192

The pair ended yesterday’s volatile session without significant changes. Data on the declining U.S. GDP kicked off a technical recession in the country, which in turn supported the euro. Nevertheless, expectations remain negative, and the downtrend is not broken yet. Prices continue to move in a range with support at 1.0120 and resistance at 10270. First daily resistance for the bulls is the area at 1.0220. A break above 1.0270 will be needed for a change in sentiment, but fundamentals for a stronger euro are also missing. A more likely scenario is another bear attack towards 1.0120. The zone has already been breached this week and a breakout is not out of the question. This would pave the way for a new test of 1.0000 and a parity between the euro and the U.S. dollar. Today, on the economic radar is data coming from the Eurozone – German GDP (07:00 GMT) and Eurozone Consumer Price Index (10:00 GMT)

USD/JPY

Current level – 134.34

The pair has lost over 2% since the U.S. interest rate announcement earlier this week. It seems the market is entering a long-awaited correction. The main support at 139.93 was broken without much difficulty for the bears. Prices are approaching support coming from the higher time frames – 134.20. It is likely that the declines will slow and the market will correct some of the recent losses. On a possible breakout, the next area expected to offer support is 131.50. The uptrend is still in place and a failed peak on the larger time frames will be needed to change sentiment. For today, the first support for the bulls is 134.20 and the first resistances are 134.93 and 135.70.

GBP/USD

Current level – 1.2165

In recent days, the Sterling managed to recover to the resistance around 1.2170-1.2184. The zone comes from the larger frames and may not be overcome on the first time. Expectations are that the market will remain in a corrective phase with main support around 1.2040. First support for the day bulls can expect around 1.2100-1.2086. A possible break of 1.2170 could open the way to the next resistance around 1.2300.

Gold price hits the target 

Gold price succeeded to achieve our waited target at 1755.70, and begins today with additional bullish bias to breach this level and confirm the continuation of the correctional bullish trend, targeting 1770.00 followed by 1779.25 levels as next stations.

Therefore, we expect to witness more bullish bias within the intraday bullish channel that appears on the chart, taking into consideration that failing to breach 1770.00 will stop the bullish wave and press on the price to return to the main bearish track again.

The expected trading range for today is between 1745.00 support and 1780.00 resistance.

The expected trend for today: Bullish

Source: Technical analysis

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