DAILY TECHNICAL ANALYSIS FOR MARCH 24, 2022petar skakalov
Current level – 1.0997
The sell-off was limited to the support level at 1.0974 and the common European currency recovered part of its losses. However, the market sentiments remain negative and the bears would most probably try to regain control and attack the mentioned zone. A confirmed breach of that critical support would easily deepen the sell-off towards the psychological level at 1.0900. In the opposite direction, only a confirmed breach of the resistance at 1.1044 would allow the bulls to enter the market and lead the pair towards a test of the resistance at 1.1126. Today, an increase in market volatility can be expected around the announcement of the initial jobless claims for the United States at 12:30 GMT.
Current level – 121.00
The strong rally of the U.S. dollar, which started on 04.03.2022, seems to be slowing down and the pair has formed a support zone around the level at 121.32. The bulls start to lose momentum and a most likely scenario for today’s trading session is for the pair to enter a corrective phase before a potential continuation of the uptrend. On the other hand, this could be considered as an opportunity for the buyers to find a better entry level at the zone around 120.00. However, the market participants would most probably stay cautious and wait for the price to break the support at 120.44 before entering the market. In case the bulls prevail and manage to violate the resistance at 121.32, then we may expect the appreciation of the U.S. dollar to continue and the price to reach the levels at 122.15.
Current level – 1.3190
After the pair bounced back from the resistance at 1.3290, the sterling lost ground against the U.S. dollar and, at the time of writing, the pair is hovering just above the support at 1.3185. The expectations are for this level to be tested and, if successfully breached, a short consolidation in the range 1.3100 – 1.3180 may take place. However, if the bears gain enough momentum to overcome the lower border of the range, this may deepen the sell-offs resulting in a sharp decline towards the critical psychological level at 1.3000. On the other hand, if the bulls take control over the markets and the support at 1.3185 resists the bearish pressure, we may expect GBP/USD to head towards a test of the important resistance at 1.3289, followed by the one at 1.3350.
Gold price is recovering
Gold price confirmed breaching 1925.35 level and hold above the EMA50, to head towards achieving more expected rise on the intraday basis, targeting testing 1960.00 as a first station, noting that breaching this level will extend gold price gains to reach 2000.00 barrier.
Stochastic current negativity might press on the price to provide some temporary bearish bias before resuming the suggested rise, noting that breaking 1925.35 will put the price under the correctional bearish pressure again.
The expected trading range for today is between 1925.00 support and 1960.00 resistance.
The expected trend for today: Bullish
Source: Technical analysis