Analytical Overview of Major Currency Pairs in 2022.07.15 :: InvestMacro


by just forex

EUR/USD . currency pair

Technical indicators for the currency pair:

  • Previous Open: 1.0056
  • Previous Close: 1.0020
  • % changing. Over the past day: -0.36%

Yesterday, EUR/USD fell below 1 for the first time in 20 years after Italian Prime Minister Mario Draghi’s coalition government party did not support Parliament’s vote of confidence, after which Draghi announced his resignation. However, the Italian president refused to resign. Inflation data in Italy will be released today. Analysts expect consumer prices to rise another 1.2%. Fed officials Waller and Bullard said yesterday that they favor a 75 basis point hike at the central bank’s July meeting, making a more aggressive 100 basis point move less likely. However, analysts believe that the US dollar index will continue to rise as the dollar takes advantage of the prospects of higher interest rates from other global central banks, including the European Central Bank.

Trading Recommendations

  • Support levels: 1.0000
  • Resistance levels: 1.0074, 1.0147, 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 a downtrend. The situation remains the same. At the moment, the price is trading below the moving averages, the MACD indicator is in the negative territory, but the divergence is already observed on several time frames. Under these market conditions, short positions can be considered from the resistance level of 1.0174 or 1.0147, but only after additional confirmation. It is better to look for long positions on the intraday time frames from the support level 1.0000, 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 15.07.2022:

  • – Italian CPI for the Eurozone (monthly) at 11:00 (GMT +3);
  • – US Retail Sales (month / month) at 15:30 (GMT + 3);
  • – US Empire State New York (monthly) at 15:30 (GMT + 3);
  • – US Industrial Production (m / m) at 16:15 (GMT +3);
  • – US Michigan Consumer Confidence (MoM) at 17:00 (GMT +3).

Currency pair GBP / USD

Technical indicators for the currency pair:

  • Previous conquest: 1.1889
  • Previous Close: 1.1822
  • % changing. Over the past day: -0.57%

Despite the positive UK GDP data from last month, the leading indicators of consumer confidence in the country remain low. Household spending is on the rise, and incomes are not keeping pace with this growth. However, economists are optimistic and confident that the British economy will not face a recession this year, despite record levels of inflation, which is expected to peak in the fall. Goldman Sachs forecasts that the positive momentum of GDP will continue in the coming months and expects GDP growth of 0.4% in the third quarter.

Trading Recommendations

  • Support levels: 1.1801
  • Resistance levels: 1.1887, 1.2002, 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. The MACD indicator is in the negative territory, but there are signs of divergence. Under these market conditions, short positions can be considered from the 1.1887 resistance level, but only after additional confirmation. It is better to look for long positions on the intraday time frames from the support level 1.1801, but only with confirmation and short targets.

Alternative scenario: If the price breaks through the resistance level of 1.2003 and is fixed above, it is likely that the uptrend will resume.

British Pounds / US Dollars

There is no news feed for today.

Currency pair USD/JPY

Technical indicators for the currency pair:

  • Previous conquest: 137.29
  • Previous Close: 138.94
  • % changing. Over the past day: + 1.20%

The dollar jumped to a 24-year high against the Japanese yen, as the Bank of Japan maintains a dovish stance. The massive gap between interest rates and diametrically opposed monetary policy between Japan and the US has already pushed the USD/JPY pair to multi-year highs. Chief Cabinet Secretary Hirokazu Matsuno said Thursday that the Japanese government is once again concerned about the sharp drop in the yen and will monitor the currency market more urgently, working closely with the Bank of Japan. But Mr. Matsuno did not comment on the issue of currency interference. The Bank of Japan is expected to keep interest rates very low at its next meeting on July 20-21, highlighting the growing divergence from the global wave of rate hikes by the central bank.

Trading Recommendations

  • Support levels: 138.12, 137.44, 137.12, 136.48, 135.92, 135.40, 134.64, 134.11
  • Resistance levels: 139.10

From a technical point of view, the medium-term trend of the USD/JPY pair is bullish. The MACD indicator turned positive, the buyer pressure increased, and the price continued its upward trend. Under such market conditions, it is better to wait for a slight dip, as the price has strongly deviated from the average values. Long positions can be sought within a day of the 138.12 support level, but with confirmation. The resistance level of 139.90 can be considered for sale, but only with additional confirmation and short targets.

Alternative scenario: If the price holds below 136.48, 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 Conquest: 1.2970
  • Previous Close: 1.3115
  • % changing. Over the past day: +17%

The Canadian dollar is a commodity currency and depends not only on the monetary policy of the Bank of Canada but also on the dynamics of the US dollar index and oil prices. Yesterday morning, the US dollar index rose sharply, while oil prices fell by $9. As a result, the price of the US dollar / Canadian dollar jumped. But by the end of the day, oil prices stabilized, and the dollar rebounded from its highs, which led to a slight correction in the USD/CAD pair. At the moment, the central banks of the United States and Canada are on the path of raising interest rates, and the size of interest rates is equal, so medium-term trends should not be expected here.

Trading Recommendations

  • Support levels: 1.3060, 1.3024, 1.2959
  • Resistance levels: 1.3154, 1.3236

In terms of technical analysis, the trend on the USD/CAD currency pair is bullish. The price is trading above the moving averages again, but there are weak signs of divergence. In these market conditions, it is better to look for long positions on the lower time frames after a slight dip to the 1.3060 or 1.3024 support level, but with confirmation. For short positions, it is better to look at the resistance level 1.3154, 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

News Briefing for 15.07.2022:

  • – Canadian Retail Sales (m/m) at 15:30 (GMT +3).

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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