Analytical overview of the major currency pairs in 2022.07.06 :: InvestMacro


by just forex

EUR/USD . currency pair

Technical indicators for the currency pair:

  • Previous Conquest: 1.0417
  • Previous Close: 1.0264
  • % changing. Over the past day: -1.49%

The euro fell on Tuesday to its lowest level in 20 years. This is largely due to lower investor sentiment, with growing fears of a recession in the eurozone, higher gas prices, no signs of easing the conflict in Ukraine, and an interest rate differential between the Federal Reserve and the European Central Bank. All these factors dealt a heavy blow to the Euro, which has lost more than 9% of its value against the Dollar since the beginning of the year.

Trading Recommendations

  • Support levels: 1.0223, 1.0179
  • Resistance levels: 1.0284, 1.0365, 1.0415, 1.0504, 1.0564, 1.0611

From a technical point of view, the trend on the EUR/USD currency pair on the hourly time frame is a downtrend. Yesterday the price showed a sharp bearish impulsive wave. When the price is trading below the moving averages, the MACD indicator becomes negative, showing signs of oversold. Under these market conditions, short positions can be considered from the 1.0284 resistance level, but only after additional confirmation. It is better to look for long positions on the intraday time frames from the support level 1.0223, but only with confirmation and short targets.

Alternative scenario: If the price breaks through the resistance level 1.0504 and is fixed above, the uptrend is likely to resume.

News Briefing for 2022.07.06:

  • – Eurozone retail sales (month / month) at 12:00 (GMT + 3);
  • – Economic forecast for the EU eurozone (month / month) at 12:00 (GMT + 3);
  • – FOMC member Williams speaking at 16:00 (GMT +3);
  • – UK ISM PMI (monthly) at 17:00 (GMT + 3);
  • – US JOLTs (m/m) at 17:00 (GMT+3);
  • – Minutes of the Federal Open Market Committee meeting at 21:00 (GMT +3).

Currency pair GBP / USD

Technical indicators for the currency pair:

  • Previous conquest: 1.2101
  • Previous Close: 1.1954
  • % changing. Over the past day: -1.23%

Yesterday, the Bank of England released its Financial Stability Report. The report notes that the global outlook has deteriorated significantly. It puts pressure on the finances of households and businesses. Commodity markets remain significant risks, and the invasion of Ukraine is a key factor in further expectations as it could lead to further disruptions in global energy and food markets. The Bank of England, along with other central banks, is raising interest rates in an effort to bring down inflation. However, Bank of England Governor Andrew Bailey admitted that this has made the economic situation more difficult for households and businesses. In addition to the economic crisis, there is a political crisis brewing in Britain. Finance Minister Rishi Sunak resigned just minutes after the health minister resigned, saying he had lost faith in Johnson’s ability to govern in the national interest.

Trading Recommendations

  • Support levels: 1.1938
  • Resistance levels: 1.1989, 1.2021, 1.2065, 1.2095, 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 very similar to the euro. Yesterday the price showed a sharp bearish impulse. When the price is trading below the moving averages, the MACD indicator becomes negative, showing signs of oversold. Under these market conditions, short positions can be considered from the resistance level of 1.1989 or 1.2021, but only after additional confirmation. It is better to look for long positions on the intraday time frames from the support level 1.1938, 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

News Briefing for 2022.07.06:

  • – UK construction PMI (m / m) at 11:30 (GMT + 3);
  • – Minutes of the Federal Open Market Committee meeting at 21:00 (GMT +3).

Currency pair USD/JPY

Technical indicators for the currency pair:

  • Previous conquest: 135.56
  • Previous Close: 135.88
  • % changing. Over the past day: +0.24%

Despite the impressive dollar rally yesterday, the Japanese Yen was trading quieter than the other currencies, indicating that the USD/JPY prices may have hit a ceiling and may reverse soon. However, the policy of the Central Bank of Japan did not help this, which continued to take a soft approach, while the US Federal Reserve is aggressively raising interest rates.

Trading Recommendations

  • Support levels: 135.16, 134.11, 133.35, 131.67, 131.00, 130.12, 129.48, 128.76
  • Resistance Levels: 136.48

The medium-term trend of the USD/JPY is bullish. Buyer pressure in recent days is increasing again. The MACD indicator has turned positive, and the price is forming a broad equilibrium. Under such market conditions, long positions can be considered from the 135.16 support level, but with confirmation. The resistance level 136.48 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 2022.07.06:

  • – Minutes of the Federal Open Market Committee meeting at 21:00 (GMT +3).

Currency pair USD/CAD

Technical indicators for the currency pair:

  • Previous Conquest: 1.2861
  • Previous Close: 1.3028
  • % changing. Over the past day: + 1.30%

The US dollar showed an amazing rally yesterday, while oil prices collapsed. As a result, the price of the USD/CAD pair rose. The Canadian dollar is a commodity currency, so it is highly dependent on instruments such as the dollar index and oil. However, it is worth noting that the Bank of Canada is also on the way to tightening interest rates and practically does not lag behind the US Federal Reserve. This means that the Canadian dollar has reason to strengthen.

Trading Recommendations

  • Support levels: 1.2998, 1.2959, 1.2934, 1.2894
  • Resistance levels: 1.3052, 1.3077

In terms of technical analysis, the trend on the USD/CAD currency pair is bullish. Yesterday, the price showed a sharp ascending impulse, and the MACD indicator is in the overbought territory. Under such market conditions, it is better to wait for a small pullback, since the price has deviated sharply from the mean lines. It is better to look for longs on lower time frames from the support level 1.2998 or 1.2959, but better with additional confirmation. For short positions, it is better to look at the resistance level 1.3052, 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
  • – US Federal Open Market Committee minutes at 21:00 (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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