DAILY TECHNICAL ANALYSIS FOR MARCH 30, 2022petar skakalov
Current level – 1.0950
During yesterday’s trading session, the single European currency significantly increased its value against the U.S. dollar, reaching the critical resistance at 1.1126. However, this level appeared to be too strong of a resistance zone for the bulls to overcome. At the time of writing, the pair is hovering just below the mentioned resistance and the expectations are for another attack of this level. If it is successfully breached, then an upward movement towards the next resistance level at 1.1230 may be expected. On the other hand, if the bears prevail and the resistance at 1.1126 deflects the bullish pressure, then a test of the support at 1.1044 could be considered as an alternative scenario. Today, an increase in activity can be expected around the announcement of the GDP data for the United States at 12:30 GMT and the change in ADP non-farm employment data at 12:15 GMT, again for the United States.
Current level – 122.97
The currency pair entered a corrective phase following the unsuccessful attempt at breaching the resistance at 124.97 and made a fake breach of the support at 122.41. If the USD/JPY remains above this support level, then the uptrend may be restored and the pair could head towards a test of the resistance at 124.97. However, if the local resistance at 123.68 holds off the bulls’s attack, then a short consolidation in the range of 122.41 – 123.68 may be expected. In case the bears take control over the market and manage to violate the support at 122.41, then this may be considered as a signal that the correction could develop further and that the pair could move towards the zone at 121.47.
Current level – 1.3095
Neither the bears, nor the bulls managed to gain enough momentum and trading for the Cable remained locked in the zone between 1.3050 and 1.3100. A breach of the upper border, followed by a violation of the next target at 1.3185, could lead to a recovery and a move towards the major resistance at 1.3289. If the bears take control, then a breach of the support zone at 1.3050 could deepen the sell-off and could easily lead to new future losses for the sterling against the greenback and to a test of the psychological level at 1.3000.
Gold price tests the resistance
Gold price traded positively to test the key resistance 1925.35, which represents key level to determine the next trend, as breaching it will lead the price to resume the main bullish trend and achieve additional gains that reach 1960.00, while consolidating against the current rise will press on the price to decline again and visit 1890.00 initially.
Therefore, we prefer to stay aside until the price confirms its situation according to 1925.35 level followed by detecting the next destination clearly.
The expected trading range for today is between 1900.00 support and 1945.00 resistance.
The expected trend for today: Neutral
Source: Technical analysis