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23Mar

Daily Technical analysis for March 23, 2021

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EUR/USD

Current level – 1.1927

After the single European currency unsuccessfully tested the level of resistance at 1.1970 at the end of last week, we witnessed a corrective move in the negative direction and a restriction of the movement below the mentioned level. Currently, the formation of a range between 1.1870 – 1.1990 is possible, with the first significant support zone outside the channel being the level of 1.1835. In case of positive market developments, the first significant resistance would lie at the level of 1.2026.

USD/JPY

Current level –  108.72

The U.S. dollar began to lose ground against the Japanese yen after last week’s failed attempt by the bulls to gain enough momentum and breach the main resistance at 109.20. However, the movement of the currency pair is currently restrained within the narrow channel of 108.30 – 109.20. Further sell-offs here are possible, which could lead the pair towards the lower border of the range – 108.30. A breach of this level would signal bears’ predominance and could lead to a possible test of the next significant support zone at 106.92.

GBP/USD

Current level – 1.3842

The pound lost ground against the U.S. dollar during last week and is on its way out of the 1.3860 – 1.3990 range. At the time of writing, the pair is sitting just below the lower border of this channel, but the breach is yet to be confirmed. If the bears fail to affirm their positions, it is possible for us to witness trading return to the previously mentioned range, with the first more significant resistance being the upper border of the range- 1.3990. Coincidentally, this level also acts as a psychological level for the market participants. The announcement of claimant count unemployment change data for the UK (07:00 GMT) may affect the price movement of the currency pair.

Gold price faces solid resistance

Gold price finds difficulty to breach 1740.00 barrier, to continue testing the support base formed above the breached resistance of the bearish channel that appears on the chart, getting continuous positive support by the EMA50, to keep the bullish trend scenario active for the upcoming period, which targets 1765.00 as a next main station.

On the other hand, we should note that breaking 1731.00 will stop the expected rise and press on the price to return to the main bearish track again.

The expected trading range for today is between 1725.00 support and 1765.00 resistance.

The expected trend for today: Bullish

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