Analytical Overview of Major Currency Pairs for 19.07.2022 :: InvestMacro


by just forex

EUR/USD . currency pair

Technical indicators for the currency pair:

  • Previous Open: 1.0082
  • Previous Close: 1.0143
  • % changing. Over the past day: +0.61%

Today, new inflation data will be released in Europe. Experts believe consumer prices will remain at 8.6% year on year. If the actual data proves to be better than expected, the European currency could strengthen pending a further interest rate hike by the European Central Bank, which is scheduled to meet this week on Thursday. If the data is equal to or less than the expected level, the euro may lose its momentum, and a new wave of sales will begin.

Trading Recommendations

  • Support levels: 1.0106, 1.0035, 1.0000
  • Resistance Levels: 1.0221, 1.0284, 1.0365, 1.0415, 1.050

From a technical point of view, the trend on the EUR/USD currency pair on the hourly time frame is bearish. The price bounced from the psychological level of 1.00 and is trading between the moving averages and the MACD indicator has turned positive and there is a slight buying pressure. Under these market conditions, short positions can be considered from the 1.0221 resistance level, but only after additional confirmation. It is better to look for long positions on the intraday time frames from the support level 1.0106, but only with confirmation and short targets.

Alternative scenario: If the price breaks through the resistance level 1.0221 and is fixed above, it is likely that the uptrend will resume.

News Briefing for 19.07.2022:

  • – Eurozone consumer price index (m / m) at 12:00 (GMT + 3);
  • – US Building Permits (m / m) at 15:30 (GMT + 3);

Currency pair GBP / USD

Technical indicators for the currency pair:

  • Previous conquest: 1.1866
  • Previous Close: 1.1949
  • % changing. Over the past day: +0.70%

The correction of the US dollar and investors’ appetite for risk supported the movement of the British pound. Investors are now preparing for a radical bill from the former finance minister and rival of the conservative prime minister, Rishi Sunak, which will be released on Wednesday. It will give ministers a chance to assess the regulatory decisions of the Bank of England if they do not like it. The BoE chief will be addressing tonight, so traders need to watch for any hints from Bailey regarding a further rate hike at the upcoming meeting. UK labor market data will also be released today, but analysts do not expect major changes here.

Trading Recommendations

  • Support levels: 1.1908, 1.1803
  • Resistance levels: 1.1987, 1.2024, 1.2065, 1.2137

From a technical point of view, the trend on the GBP/USD currency pair on the hourly time frame is a downtrend. The situation is similar to the euro, but the pound sterling looks more confident. Yesterday the price reached the level of priority change, but the sellers did not allow the price to rise. At the moment, the price is trading between the moving averages, the MACD indicator is in the positive territory, and the buying pressure is still present. Under these market conditions, short positions can be considered from the 1.1987 resistance level, but only after additional confirmation. It is better to look for long positions on the intraday time frames from the support level 1.1908, but only with confirmation and short targets.



Alternative scenario: If the price breaks through the resistance level 1.2024 and is fixed above, the uptrend is likely to resume.

British Pounds / US Dollars

News Briefing for 19.07.2022:

  • – UK Average Gain Index (m/m) at 09:00 (GMT +3);
  • – change the number of claimants in the UK (month / month) at 09:00 (GMT + 3);
  • – UK unemployment rate (month / month) at 09:00 (GMT + 3);
  • – The Governor of the Bank of England speaks at 20:45 (GMT +3);

Currency pair USD/JPY

Technical indicators for the currency pair:

  • Previous conquest: 138.54
  • Previous Close: 138.12.2019
  • % changing. Over the past day: -0.30%

There are no major changes here at the moment. The Bank of Japan maintains a soft monetary policy, while the US Federal Reserve is on the path of significantly raising interest rates. This completely opposite policy has pushed the USD/JPY to a 24-year high. Until the end of the summer at least, the monetary policy of the central banks of Japan and the United States will remain the same. Japan’s inflation data will be released at the end of this week, which may affect the BoJ. But until then, the price is likely to balance out in a narrow range.

Trading Recommendations

  • Support levels: 137.70, 137.13, 136.48, 135.92, 135.40, 134.64, 134.11
  • Resistance levels: 138.71, 140.29

From a technical point of view, the medium-term trend of the USD/JPY pair is bullish. The MACD indicator became inactive, the buyer pressure decreased, and the price corrected to the average values. Under such market conditions, it is better to look for intraday long positions from the 137.70 support level, but with confirmation. The resistance level of 138.71 can be considered for short positions, but only with additional confirmation and short targets.

Alternative scenario: If the price holds below 137.13, the downtrend is likely to resume.

US dollar / Japanese yen

There is no news feed for today.

Currency pair USD/CAD

Technical indicators for the currency pair:

  • Previous Open: 1.3016
  • Previous Close: 1.2983
  • % changing. Over the past day: -0.25%

The Canadian dollar is a commodity currency based on the US dollar index and oil prices. Yesterday, the US dollar index fell, and oil prices rose higher and approached the $100 per barrel level. This gave confidence to the Canadian currency. Canadian inflation data will be released this week, and analysts expect another jump in consumer prices. The strengthening of the national currency is usually accompanied by a rise in inflation amid expectations that the central bank will be more aggressive in raising interest rates.

Trading Recommendations

  • Support levels: 1.2934, 1.2880, 1.2853
  • Resistance levels: 1.3006, 1.3106, 1.3154

In terms of technical analysis, the trend on the USD/CAD currency pair is bullish. But yesterday, the price reached the priority change level but failed to consolidate lower. Buyers defended their positions. In these market conditions, it is better to look for long positions on the lower time frames after the 1.2934 support level, but with confirmation because the level has already been tested. For short positions, it is better to look at the resistance level 1.3006, but it is also better with confirmation and short targets.

Alternative scenario: If the price breaks through the support level 1.2934 and consolidates below the support level 1.2934, the downtrend is likely to resume.

US dollar / Canadian dollar

There is no news feed for today.

by just forex

This article reflects a personal opinion and should not be construed as investment advice and/or a continuing offer and/or solicitation to carry out financial transactions and/or guarantee and/or anticipation of future events.


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