Analytical overview of the major currency pairs in 2022.07.05 :: InvestMacro


by just forex

EUR/USD . currency pair

Technical indicators for the currency pair:

  • Previous Conquest: 1.0415
  • Previous Close: 1.0422
  • % changing. Over the past day: +0.07%

In his speech yesterday, ECB Vice President Luis de Guindos said that high inflation in the Eurozone will continue for some time. The European Central Bank expects that lower energy prices, elimination of pandemic-related supply disruptions, and monetary policy normalization will help inflation return to its 2% target over the medium term. But the war and the risk of further disruptions to the energy supply in the Eurozone remains a significant downside risk. The European Central Bank is still planning to raise rates by 0.25% at the July meeting and make another increase at the September meeting.

Trading Recommendations

  • Support levels: 1.0412, 1.0379
  • Resistance levels: 1.0447, 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, and the MACD indicator has become inactive. The price is flat again. Under these market conditions, short positions can be considered from the 1.0447 or 1.0504 resistance level, but only after additional confirmation. It is better to look for long positions on the intraday time frames from the support level 1.0412, 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 2022.07.05:

  • – German PMI for services in the Eurozone (MoM) at 10:55 (GMT +3);
  • – Purchasing Managers’ Index for Eurozone Services (M/M) at 11:00 (GMT +3).

Currency pair GBP / USD

Technical indicators for the currency pair:

  • Previous conquest: 1.2103
  • Previous Close: 1.2102
  • % changing. Over the past day: -0.01%

The British pound rose against its safe-haven currencies on Monday, supported by an improvement in global risk appetite during a quiet trading session due to the weekend in the United States. The divergence between the monetary policy of the Bank of England and the US Federal Reserve regarding rising inflation also pressured the British Pound. The Federal Reserve’s interest rate is currently at 1.75%, while the Bank of England’s rate is at 1.25%. Such an overbalance in the price will contribute to a further decline in the GBPUSD rates in the medium term.

Trading Recommendations

  • Support levels: 1.2062, 1.2015, 1.1974
  • Resistance levels: 1.2137, 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 the price is forming a broadly volatile flat. Under these market conditions, short positions can be considered from the resistance level of 1.2137 or 1.2172, but only after additional confirmation. It is better to look for long positions on the intraday time frames from the support level 1.2062, but only with confirmation and short targets.

Alternative scenario: If the price breaks through the resistance level of 1.2324 and is fixed above, it is likely that the uptrend will resume.

British Pounds / US Dollars

News Briefing for 2022.07.05:

  • – UK Services PMI (month / month) at 11:30 (GMT +3);
  • – Bank of England Financial Stability Report (monthly) at 12:30 (GMT +3);
  • – Bank of England Governor speaking at 13:00 (GMT +3).

Currency pair USD/JPY

Technical indicators for the currency pair:

  • Previous conquest: 135.28
  • Previous Close: 135.65
  • % changing. Over the past day: +0.27%

According to the former chief economist at the Bank of Japan, inflation in Japan will be higher and longer than the Bank of Japan now expects, making an upward revision to price expectations likely later this month. But the revision will not mean that a change in monetary policy is imminent. The Bank of Japan will present its latest quarterly forecast on July 21. His yield curve control program has been heavily criticized in recent weeks due to increased speculation of tightening.

Trading Recommendations

  • Support levels: 135.67, 134.83, 133.35, 131.67, 131.00, 130.12, 129.48, 128.76
  • Resistance Levels: 136.57

The medium-term trend of the USD/JPY is bullish. Buyer pressure has increased in recent days again. The MACD indicator has turned positive, and the price is forming a broad equilibrium. Under such market conditions, buying from the support level of 135.67 can be considered, but with confirmation. The resistance level 136.57 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 2022.07.05:

  • – Japanese Services PMI (monthly) at 03:30 (GMT +3).

Currency pair USD/CAD

Technical indicators for the currency pair:

  • Previous conquest: 1.2877
  • Previous Close: 1.2858
  • % changing. Over the past day: -0.15%

Canadian manufacturing activity declined slightly in June as inflationary pressures and material shortages hampered production, and companies became less optimistic about future production. The manufacturing index fell to its lowest level since June 2020 to 50.9 from 55.6 in May. Consumer expectations for inflation rose, along with concerns about food and gas prices and rents. Companies expect inflation to rise over a longer period. Both surveys reinforce calls for a 75 basis point rate hike in the upcoming BoC decision on July 13.

Trading Recommendations

  • Support levels: 1.2847, 1.2781, 1.2701, 1.2616
  • Resistance levels: 1.2914, 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 these market conditions, it is better to look for long positions in the lower time frames from the support level 1.2847, but with confirmation. For short positions, it is better to look at the resistance level 1.2914, but it is also better with confirmation and short targets.

Alternative scenario: If the price breaks through the 1.2838 support level and consolidates below the 1.2838 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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