Analytical overview of the major currency pairs in 2022.06.28 :: InvestMacro


by just forex

EUR/USD . currency pair

Technical indicators for the currency pair:

  • Previous Conquest: 1.0546
  • Previous Close: 1.0581
  • % changing. Over the past day: +0.33%

US durable goods orders unexpectedly rose 0.7% in May, while analysts expected no change. Meanwhile, pending home sales in the US outstripped the six-month decline and showed slight gains. As declining inflation expectations led to a reassessment of the prospects for sharp interest rate increases, the dollar index fell, allowing the euro to rise slightly. Futures pricing indicates that traders now expect the US Federal Reserve’s benchmark interest rate to stabilize at around 3.5% (previous forecast was 4% in 2023).

Trading Recommendations

  • Support levels: 1.0573, 1.0408, 1.0379
  • Resistance Levels: 1.0611, 1.0680, 1.0723

From a technical point of view, the trend on the EUR/USD currency pair on the hourly time frame is a downtrend. Price is still wide corridor, MACD has become inactive, but divergence towards sales. Under these market conditions, short positions can be considered from the 1.0611 resistance level, but only after additional confirmation. A price move above 1.0611 will change the priority. It is better to look for long positions on the intraday time frames from the support level 1.0573 or the lower border of the flat, but only with confirmation and short targets.

Alternative scenario: If the price breaks through the resistance level 1.0611 and is fixed above, it is likely that the uptrend will resume.

News Briefing for 2022.06.28:

  • – FOMC member Williams speaking (month / month) at 01:30 (GMT +3);
  • – European Central Bank President Lagarde speaking at 11:00 (GMT +3);
  • – US Consumer Confidence Index (m/m) at 17:00 (GMT +3).

Currency pair GBP / USD

Technical indicators for the currency pair:

  • Previous conquest: 1.2263
  • Previous Close: 1.2266
  • % changing. Over the past day: +0.02%

UK household inflation expectations have fallen to their lowest level since January, which is good news for Bank of England officials who fear increasing price pressures. Despite this, inflation expectations remain high. Financial markets show about a 73% chance that the BoE will raise the bank rate to 1.75% from 1.25% at the next policy meeting on August 4th.

Trading Recommendations

  • Support levels: 1.2238, 1.2093, 1.1974
  • Resistance Levels: 1.2324, 1.2422, 1.2470, 1.2523, 1.2629

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 very similar to the euro. The price is forming a wide corridor, while the MACD indicator is not showing any activity, but there is a slight divergence. Under these market conditions, short positions can be considered from the resistance level of 1.2422 or the upper boundary of the flat, but only after additional confirmation. It is better to look for long positions on the intraday time frames from the support level 1.2238 or the lower border of the flat, but only with confirmation and short targets.

Alternative scenario: If the price breaks through the resistance level 1.2422 and is fixed above, the uptrend is likely to resume.

British Pounds / US Dollars

There is no news feed for today.

Currency pair USD/JPY

Technical indicators for the currency pair:

  • Previous conquest: 135.11
  • Previous Close: 135.47
  • % changing. Over the past day: +0.27%

The yield spread between Japanese government bonds and US Treasuries continues to keep the yen low. However, the Bank of Japan is keeping its monetary policy soft as policy makers attribute higher inflation to higher energy and commodity prices. More and more analysts are beginning to believe that at some point, the Bank of Japan will intervene in the currency, as the weak yen is taking a heavy toll on the Japanese economy. Both BoJ Governor Kuroda and Prime Minister Kishida of Japan acknowledged this point.

Trading Recommendations

  • Support levels: 134.84, 133.35, 131.67, 131.00, 130.12, 129.48, 128.76
  • Resistance levels: 135.88, 136.66

The medium-term trend of the USD/JPY is bullish. The price is trading near the moving average lines and it forms a great equilibrium in the price. The MACD indicator has become inactive. Under such market conditions, buying from the support level 134.84 or 133.35 can be considered, but with confirmation. The resistance level 135.88 is good for short positions, but only with additional confirmation and short targets.

Alternative scenario: If the price holds below 133.35, 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: 1.2889
  • Previous Close: 1.2873
  • % changing. Over the past day: -0.12%

The Canadian dollar is a commodity currency, so it depends not only on the US dollar index but also on oil prices. The dollar index fell yesterday, while oil prices rose over the past three trading sessions. As a result, the Canadian dollar strengthened. It should be noted that the Bank of Canada is on course to raise interest rates and recent inflation data has shown that inflation in Canada has not stopped rising. Therefore, based on the expectations of a rate hike in the upcoming meeting, the Canadian dollar may continue its upward momentum in the coming days.

Trading Recommendations

  • Support levels: 1.2815, 1.2709, 1.2618, 1.2578, 1.2510
  • Resistance levels: 1.2887, 1.2956, 1.3068

In terms of technical analysis, the trend on the USD/CAD currency pair is bullish. But the MACD indicator has turned negative, and the price is trading below the moving averages. Buyers lose the lead. A price move below 1.2815 will change the priority. In these market conditions, it is better to look for long positions in the lower time frames from the support level 1.2815. For short positions, it is better to look at the resistance level 1.2956, but it is also better with confirmation and short targets.

Alternative scenario: If the price breaks through the support level 1.2815 and consolidates below the support level 1.2815, 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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