DAILY TECHNICAL ANALYSIS FOR JUNE 22, 2022petar skakalov
Current level – 1.0534
In the early hours of today, the euro was gaining strength against the dollar, and after testing the key levels at around 1.0500 and subsequently bouncing off it, the single European currency continued to grow in value against the greenback after the European session started. A few hours later, it even managed to reach its weekly peak of 1.0582 – a level that was also touched on last week. However, this level played the role of resistance and the bulls gave up on their next attack, as the euro fell to levels at around 1.0535 shortly before the end of the day. Today, there is no data in the macroeconomic calendar that would affect the rate of the euro against the U.S. dollar. Traders will focus their attention on Thursday’s data on German managers’ production and services assessment, scheduled at 7:30 GMT. If we see a high score, this may prompt the bulls to launch a new attack and possibly breach 1.0582, but for now, there is still a high probability that the dollar will continue its upward trend.
Current level – 136.51
At the moment, it seems like nothing could stop the USD/JPY’s uptrend. The currency pair started its rise in the early hours of today, and sometime around the opening of the European session, it convincingly breached its previous resistance of 135.46 and reached a new monthly peak of 136.68 just before the end of the day. There are currently no expected macroeconomic events that could help the yen to gain some ground and the current trend will most likely be preserved. Of course, market corrections that provide the bulls with convenient entry points are not to be excluded, similar to those of last week which downed the Ninja to 131.80.
Current level – 1.2272
The sterling also managed to take advantage of the weakening dollar and continued its upward trend. After the opening of the London Stock Exchange, we saw a successful bull attack and the currency once again reached its key level of 1.2320 – a level that played the role of resistance throughout the previous week. Today, it played the same role as it stopped the bull attack and the session ended at around 1.2269 as the day drew to a close. Traders will be focusing on the UK’s May inflation data on an annual basis. The macroeconomic calendar will show the information at 6:00 GMTand the movements are expected to come after that. The ongoing trend in the pound will largely depend on the bulls’ and bears’ reaction to а possible further inflation rise.
Gold price under the negative pressure
Gold price trades negatively to break 1830.00 level and settles below it now, which puts the price under expected negative pressure in the upcoming sessions, on its way to visit 1810.00 followed by 1780.25 levels as main negative targets.
Therefore, the bearish bias will be suggested for today supported by the negative pressure formed by the EMA50, taking into consideration that breaching 1838.10 followed by 1850.00 levels will stop the negative scenario and lead the price to recover again.
The expected trading range for today is between 1800.00 support and 1840.00 resistance.
The expected trend for today: Bearish
Source: Techncal analysis