DAILY TECHNICAL ANALYSIS FOR MAY 11, 2022petar skakalov
Current level – 1.0528
The single European currency is still locked in the range that started last week as any upward movement is denied by the bears. The strong dollar does not allow the euro to rise for now, but the bulls are not willing to give up the zone at 1.0525, a support which has been proved many times. The data for the CPI levels in the U.S. will come out at 12:30 GMT, expecting a slight slowdown of its growth by 0.2% compared to the 1.2% increase that came out last month and strengthened the dollar. If the traders’ reaction for the dollar is positive, we can see a break at the bottom of the range and deepening of the trend below 1.0480, but if the dollar disappoints, the bulls may try another attack above 1.0580.
Current level – 130.41
After reaching the levels around 131.30 once again, the yen began to show new strength, which continued to weaken the dollar. It is not allowing USD/JPY to rise above the resistance of 130.50, but at the same time the bulls do not allow a fall below 129.80. The danger for the yen comes from the U.S. inflation data at 12:30 GMT. If the results have a positive effect on the dollar, we can see a renewed attack of 131.30 levels and possibly break above them, but if the traders react to the information negatively, a drop below 129.80 in search of a new bottom around 128.66 should not be excluded.
Current level – 1.2320
The pound chart seems to be locked between the resistance of 1.2377 and the often defended this week demand zone of 1.2300. The rise of the sterling is threatened by the expected data on April’s inflation in the U.S. at 12:30 GMT, which could have a positive impact on the dollar and send GBP/USD below 1.2300 in search of a new bottom. The opposite scenario and upward movement can be seen only after a weakening of the dollar due to data on the U.S. inflation and a convincing break of 1.2377.
Gold price confirms the break
Gold price ended yesterday below 1850.00 level, to add more confirmation to the continuation of the bearish wave domination, waiting to achieve our negative targets at 1820.00 and extend to 1780.25.
The EMA50 continues to support the suggested bearish wave, and the bearish channel reinforces the chances of continuing the decline in the upcoming sessions, while the price needs to hold below 1850.00 to guarantee achieving the suggested targets.
The expected trading range for today is between 1810.00 support and 1855.00 resistance.
The expected trend for today: Bearish
Source: Technical analysis