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DAILY TECHNICAL ANALYSIS FOR MARCH 23, 2023

EUR/USD

Current level – 1.0881

The past day was quite volatile for the pair. The Fed raised rates by 25 basis points as expected and when the data was announced, the bulls took over the market, with the rate managing to breach the resistance level at 1.0801 and head towards 1.0887 next. At the time of writing the analysis, the pair is sitting just below the resistance level at 1.0887. If the bulls’ rise continues, the aforementioned level is likely to be breached and the pair could head to the next level which is at 1.0930. Otherwise, if the bears enter the market, they are likely to direct the price to the nearest support level at 1.0706. Later in the day, traders should be more careful during the release of the data from the U.S. – Initial Jobless Claims (12:30 GMT) with a previous value of 192K and an expected small increase – 197K, New Home Sales (14:00 GMT) with the current value being 670K and an expected drop to 650K.

USD/JPY

Current level – 130.84

For the Ninja the past trading session was negative. The dollar rose against the yen, with bears targeting support at 130.56. If the negative sentiment continues and buyers do not enter the market, a possible scenario is for the pair to head towards the next support level at 128.45. Otherwise, if this does not hold and the bulls attempt to recoup some of their losses, then the pair is likely to head towards the resistance level at 132.50.

GBP/USD

Current level – 1.2285

For the Cable, the day was positive with a slight advantage of the bulls. The resistance at 1.2267 was breached and, at the time of writing, the pair is sitting just above the aforementioned resistance. If the bears enter the market and try to recoup some of their losses, it is possible that the pair could head towards the support level at 1.2187. During the day, important economic news that may lead to higher volatility is the Bank Of England Interest Rate Decision (12:00 GMT) with the previous value being 4.00% and expected to rise by 25 basis points to 4.25%.

Midday update for Gold

Gold price keeps its stability above 1962.50 level, to keep the bullish trend scenario active for today, which targets 2000.00 followed by 2040.00 as next main stations.

The EMA50 continues to support the suggested bullish wave, while stochastic negativity is causing some sideways fluctuation.

In general, the bullish trend will remain valid for the rest of the day unless breaking 1962.50 and holding below it.

The expected trading range for today is between 1955.00 support and 1995.00 resistance.

The expected trend for today: Bullish

Source: Technical analysis

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