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04May

DAILY TECHNICAL ANALYSIS FOR MAY 04, 2022

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EUR/USD

Current level – 1.0521

After the strong depreciation of the euro against the U.S. dollar from 1.0910 to 1.0520, the currency pair entered a consolidation phase in the narrow range of 1.0480 – 1.0565. During yesterday’s trading session, the bulls unsuccessfully attacked the resistance at 1.0565, which led to additional losses for the EUR towards the level at around 1.0510. The market is still failing to find a clear direction and the expectations for today’s trading session are for the bears to attack the critical support at 1.0480, where a breach would most probably lead to a resumption of the long-term downtrend. In case this scenario is realised and the pair holds its position below 1.0480, then the next target for the sellers should be the support at 1.0450, followed by the psychological level at 1.0400. In the opposite direction, only a successful breach of the resistance at 1.0565 may lead to a corrective movement towards the next resistance at 1.0653. The most important news for investors today is the expected Fed Interest Rate decision (today; 18:00 GMT) and the follow-up press conference at 18:30 GMT, as well as the data regarding the change in ADP non-farm employment for the United States at 12:15 GMT.

USD/JPY

Current level –  130.12

Low volatility is observed since the beginning of the week and the pair is trading in the narrow range of 129.70 – 130.30. A breach of the local resistance at 130.30 may lead the pair towards a test of the next important resistance at 131.23. A successful breach of the mentioned resistance may resume the uptrend and inch the price towards the level of 133.00, which was last reached in 2022. On the other hand, if the bears prevail, then a correction and a deepening of the sell-off towards the support at 127.66 is not excluded. However, such a decline could be expected only if the support at 129.29 is breached.

GBP/USD

Current level – 1.2488

The situation with the GBP/USD is similar to that of the EUR/USD, and at the time of writing, the pair is situated just above the key support at 1.2473. In case the bears take control and overcome this level, then an impulsive downward movement and a test of the next support at 1.2400 could be expected. However, if the mentioned support resists the sellers’ pressure, then we could expect an upward movement towards 1.2600.

Gold price gets a negative signal 

Gold price resumes its negative trades after the temporary rise that it witnessed yesterday, noticing that stochastic overlaps negatively now, to support the chances of continuing the bearish bias in the upcoming sessions, which gets continuous support by the EMA50, reminding you that our targets begin by breaking 1850.00 to confirm opening the way to head towards 1820.00 followed by 1780.00.

The bearish channel continues to organize the suggested bearish wave, which will remain valid conditioned by the price stability below 1890.00.

The expected trading range for today is between 1840.00 support and 1880.00 resistance.

The expected trend for today: Bearish

Source: Technical analysis

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