Analytical Overview of Major Currency Pairs on 07.14.2022 :: InvestMacro


by just forex

EUR/USD . currency pair

Technical indicators for the currency pair:

  • Previous Open: 1.0037
  • Previous Close: 1.0057
  • % changing. Over the past day: +0.20%

Inflation in the US exceeded analyst expectations. The US Consumer Price Index came in at 9.1% on an annual basis, compared to expectations of 8.8%. It’s the highest rate since 1981. Last month’s gain was 1.3%. The core index (excluding food and energy prices) stood at 5.9% with a forecast of 5.7%. On a monthly basis, core CPI rose 0.7%. European countries have also seen an increase in consumer prices. Over the past month, inflation in Germany rose by 0.1%, in France by 0.7%, and in Spain by 1.5% to 10.2% on an annual basis. Such data has struck confidence that the pace of deceleration in the future will be difficult. In his speech yesterday, FOMC spokesperson Bostick said that a 100 basis point rate hike is also being considered by the committee. There is a growing possibility that the ECB will also consider a 0.5% raise, although Fed Chair Christine Lagarde has argued several times that the first increase would be 0.25%.

Trading Recommendations

  • Support levels: 1.0000
  • Resistance Levels: 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. At the moment, the price is trading below the moving averages. The MACD indicator is in the negative territory, but the divergence has already been observed on several time frames. Under these market conditions, short positions can be considered from the 1.0147 resistance level, but only after additional confirmation. It is better to look for long positions on the intraday time frames from the support level 1.0000, but only with confirmation and short targets.

Alternative scenario: If the price breaks through the resistance level 1.0284 and is fixed above, it is likely that the uptrend will resume.

News Briefing for 07.14.2022:

  • – US Initial Jobless Claims (w/s) at 15:30 (GMT +3);
  • – US Producer Price Index (m / m) at 15:30 (GMT + 3);
  • – US natural gas storage (w/w) at 17:30 (GMT +3);
  • US FOMC member Waller speaking at 18:00 (GMT +3).

Currency pair GBP / USD

Technical indicators for the currency pair:

  • Previous conquest: 1.1884
  • Previous Close: 1.1889
  • % changing. Over the past day: +0.04%

UK GDP unexpectedly showed growth of 0.5% last month, overlapping the decline over the previous three months. Experts had expected a 0.2% decrease. At the same time, the industrial production index grew by 0.9% (expected -0.1%), while industrial production rose by 1.5% (expected -0.6%). Such positive sentiments gave confidence to the British pound.

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 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 1.2137 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: 136.86
  • Previous Close: 137.37
  • % changing. Over the past day: +0.35%

The situation on the USD/JPY currency pair remains the same. The huge gap between interest rates and diametrically opposed monetary policy has already caused USD/JPY prices to reach multi-year highs. There have been suggestions that the Bank of Japan would have to step in to strengthen the currency or adjust its control over the yield curve, but no such action was taken. Japan’s central authorities are still pushing for a weaker currency. The situation will not change soon, so traders should not rely on price reversal based on fundamental factors.

Trading Recommendations

  • Support levels: 137.44, 137.12, 136.48, 135.92, 135.40, 134.64, 134.11
  • Resistance Levels: 138.89

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. But there are signs of difference. Under these market conditions, long positions can be considered within one day of the 137.44 support level, but with confirmation. The resistance level 138.89 is good for short positions, but only with additional confirmation and short targets.

Alternative scenario: If the price holds below 135.93, the downtrend is likely to resume.

US dollar / Japanese yen

News Briefing for 07.14.2022:

  • – Japanese Industrial Production (m / m) at 07:30 (GMT +3).

Currency pair USD/CAD

Technical indicators for the currency pair:

  • Previous Open: 1.3019
  • Previous Close: 1.2978
  • % changing. Over the past day: -0.31%

The Canadian dollar strengthened after the Bank of Canada raised its benchmark interest rate by a full percentage point, surprising markets with the largest increase since 1998. The Bank of Canada said in a statement that inflation in Canada remains more resilient than the bank expected in its April monetary policy report and is likely to remain About 8% for the next few months. The bank expects the Canadian economy to grow 3.5% in 2022, 1.75% in 2023, and 2.5% in 2024. Economic activity is slowing as global growth slows and monetary policy tightens. Price forecasts indicate that inflation will start to decline later this year, dropping to around 3% by the end of next year, and returning to the 2% target by the end of 2024.

Trading Recommendations

  • Support levels: 1.2959, 1.2934, 1.2894
  • Resistance levels: 1.3001, 1.3050, 1.3113

In terms of technical analysis, the trend on the USD/CAD currency pair is bullish. But there are signs of objection to the initiative. The price is trading below the moving averages, and there is slight pressure from sellers. In these market conditions, it is better to look for long positions on the lower time frames from the support level 1.2959, but with confirmation. For short positions, it is better to look at the resistance level 1.3001, but it is also better with confirmation and short targets.

Alternative scenario: If the price breaks through the support level 1.2894 and consolidates below the support level 1.2894, then the bearish trend 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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