Analytical overview of the major currency pairs in 2022.07.01 :: InvestMacro


by just forex

EUR/USD . currency pair

Technical indicators for the currency pair:

  • Previous Conquest: 1.0441
  • Previous Close: 1.0483
  • % changing. Over the past day: -0.40%

The latest economic data showed that the seasonally adjusted unemployment rate in the eurozone was 6.6%, down from 6.7%. Inflation in France rose to a record 6.5% in June, with consumer prices growing 0.7% last month. Against this data, the euro rose sharply against the dollar yesterday, raising the possibility that the European Central Bank will act more aggressively in terms of monetary tightening. Today in Europe, the preliminary figure for Eurozone overall inflation will be released, and analysts are leaning that consumer prices will rise from 8.1% to 8.5% annually.

Trading Recommendations

  • Support levels: 1.0425, 1.0379
  • Resistance levels: 1.0504, 1.0564, 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. The price is trading below the moving averages, but the MACD indicator is turning positive. There is a new initiative from buyers. Under these market conditions, short positions can be considered from the resistance level of 1.0504, but only after additional confirmation. It is better to look for long positions on the intraday time frames from the support level 1.0425, but only with confirmation and short targets.

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

News Briefing for 2022.07.01:

  • – Spanish Eurozone Manufacturing PMI (MoM) at 10:15 (GMT +3);
  • – Italian Eurozone Manufacturing PMI (MoM) at 10:45 (GMT +3);
  • – Eurozone French Manufacturing PMI (m / m) at 10:50 (GMT +3);
  • – German Manufacturing PMI for the Eurozone (MoM) at 10:55 (GMT +3);
  • – Eurozone Manufacturing PMI (m / m) at 11:00 (GMT +3);
  • – Italian CPI for the Eurozone (monthly) at 12:00 (GMT +3);
  • – Eurozone CPI (monthly) at 12:00 (GMT +3);
  • – US ISM Manufacturing PMI (MoM) at 17:00 (GMT +3).

Currency pair GBP / USD

Technical indicators for the currency pair:

  • Previous conquest: 1.2122
  • Previous Close: 1.2178
  • % changing. Over the past day: -0.46%

The British pound rose yesterday, with the dollar index falling after negative US spending data. UK GDP rose 0.8% in the first quarter of 2022. But the outlook for the British pound now depends more on the future direction of inflation in the US and the current instability in the UK. The core PCE price index stood at 0.3%m/m in May, bringing the annual core PCE inflation rate down to 4.7% from 4.9%. At the same time, the Bank of England remains very concerned about the risks of higher commodity prices, which will cause wages and other prices in the economy to rise faster than usual.

Trading Recommendations

  • Support levels: 1.2115, 1.1974
  • Resistance levels: 1.2172, 1.2238, 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 trading below the moving averages, the MACD indicator has become inactive, and there is a new buying initiative on the intraday time frames. Under these market conditions, short positions can be considered from the 1.2172 resistance level, but only after additional confirmation. It is better to look for long positions on the intraday time frames from the support level 1.2115, but only with confirmation and short targets.

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

British Pounds / US Dollars

News Briefing for 2022.07.01:

  • – UK Manufacturing PMI (m/m) at 11:30 (GMT +3).

Currency pair USD/JPY

Technical indicators for the currency pair:

  • Previous conquest: 136.58
  • Previous Close: 135.70
  • % changing. Over the past day: -0.64%

Japan’s core Purchasing Managers’ Index (PMI) fell from 53.3 in May to 52.7 in June. According to the PMI report, Japanese companies indicated that rising costs and persistent material shortages contributed to the slowdown in production, and new orders increased only partially. Constant disruptions and delays in the supply chain have led to a rapid increase in costs, resulting in a sharp rise in factory prices, the fastest in the survey’s history. However, companies are increasingly confident that these problems will dissipate next year as business confidence surged to its highest level since March. Declining economic indicators are urging investors to buy the Japanese yen amid a possible rejection of monetary policy easing by the Bank of Japan.

Trading Recommendations

  • Support levels: 134.83, 133.35, 131.67, 131.00, 130.12, 129.48, 128.76
  • Resistance levels: 135.56, 136.24

The medium-term trend of the USD/JPY is bullish. But sellers’ pressure has been building over the past few days. The MACD indicator has turned negative. Under such market conditions, buying from the support level of 134.83 can be considered, but with confirmation. The resistance level 135.56 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

News Briefing for 2022.07.01:

  • – Japanese CPI Tokyo (m / m) at 02:30 (GMT +3);
  • – Japan Index of Large Manufacturers (m / m) at 02:50 (GMT + 3);
  • – Japan’s large non-manufacturer’s index (monthly) at 02:50 (GMT + 3);
  • – Japanese Manufacturing PMI (m/m) at 03:30 (GMT +3).

Currency pair USD/CAD

Technical indicators for the currency pair:

  • Previous conquest: 1.2886
  • Previous Close: 1.2873
  • % changing. Over the past day: +0.10%

Real GDP rose 0.3% in April, after a 0.7% increase in March. The mining, quarrying and oil and gas production sectors saw the biggest gains. The Canadian dollar is a commodity currency, so it depends not only on the dynamics of the dollar index but also on oil prices. Both the dollar index and oil prices fell yesterday. As a result, the USD/CAD rate continues to form a broad price corridor. It should be noted that both the Bank of Canada and the US Federal Reserve are on the path of raising interest rates, while the oil market is still in deficit with high summer demand. All this indicates that medium-term trends should not be expected on the USD/CAD currency pair, as market conditions favor the strengthening of the dollar index and the Canadian dollar.

Trading Recommendations

  • Support levels: 1.2885, 1.2831, 1.2781, 1.2701, 1.2616
  • Resistance levels: 1.2932, 1.2957, 1.3045

In terms of technical analysis, the trend on the USD/CAD currency pair is bullish. The price is now trading in a wide corridor, slight pressure from buyers prevails, and the MACD indicator is not showing any activity. In such market conditions, it is better to look for long positions in the lower time frames from the support level of 1.2885, but with confirmation. For short positions, it is better to look at the resistance level 1.2957, but it is also better with confirmation and short targets.

Alternative scenario: If the price breaks through the support level 1.2831 and consolidates below the support level, 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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