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DAILY TECHNICAL ANALYSIS FOR SEPTEMBER 07, 2022

EUR/USD

Current level – 0.9903

Tuesday was a volatile day for the single European currency. The day started with an extension of the uptrend movements from the previous day, and around the opening of the European session, the pair managed to reach the resistance at 0.9985. There, however, the bears took over, and after the release of the positive data on the interest rate given by managers in the U.S. services sector, they strengthened the dollar even more and managed to reach a new bottom that had not been recorded for more than 20 years, namely 0.9863. There the bulls decided to further shape their attack and corrected part of the decline, ending the day at around 0.9902. Today, between 06:00 and 08:00 GMT, traders will await for a set of data on the state of the EU economy that may help the euro recover some of its losses. However, should the data end up disappointing the forex market players, then the euro’s uncontrollable slide could continue towards new lows.

USD/JPY

Current level – 142.73

nce again we saw a new day and a new high for the Ninja. Already in the early hours of Tuesday, the previous resistance of 140.65 was breached, and without any oscillations, the USD/JPY managed to realise record prices of 143.05 as the European session came to a close. The dollar’s current strength against the Japanese currency is exceptional and no changes are expected to develop on this front anytime soon. The currency pair continues to alternate uptrends with consolidations which, however, do not last for more than a day. Today’s comments from the FOMC members on the upcoming package of key rate hikes could further strengthen the dollar, but if they end up disappointing traders, then we could see a consolidation instead.

GBP/USD

Current level – 1.1517

On Tuesday, movements in the Cable started the day promisingly as it was trading around the key level at 1.1600 close to the opening of the European session. However, after the 08:30 GMT release concerning the state of the construction sector in the UK failed to make any difference even after several hours of non-stop consolidations around the mentioned price, the bears took control over the pair and took it down towards 1.1497. A slight upward correction followed and the GBP/USD ended the day at around 1.1516. Traders are largely holding their breath today for the UK monetary policy report due out at 09:00 GMT. Whether the 1.1497 bottom will provide good support for the bulls and enable them to continue their attack, or if the bears will form a new bottom in the currency pair, remains to be seen after the report.

Gold price under the negative pressure

Gold price traded with strong negativity to break 1709.00 and close the daily candlestick below it, to activate the negative scenario on the intraday and short term basis, organized inside the bearish channel that supports the chances of continuing the decline and head towards achieving negative targets that start at 1680.00 and extend to 1670.00.

Therefore, we expect to witness more bearish bias in the upcoming sessions supported by the negative pressure formed by the EMA50, taking into consideration that failing to break 1680.00 will stop the expected decline and lead the price to recover again.

The expected trading range for today is between 1670.00 support and 1705.00 resistance.

The expected trend for today: Bearish

Source: Technical analysis

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