Analytical overview of the major currency pairs in 2022.07.07 :: InvestMacro


by just forex

EUR/USD . currency pair

Technical indicators for the currency pair:

  • Previous Conquest: 1.0266
  • Previous Close: 1.0180
  • % changing. Over the past day: -0.84%

The euro fell to a new low in two decades as rising energy prices enhanced the safe-haven appeal of the US currency and the eurozone economy slipped into recession. Germany has its first trade deficit since 1991. The large interest rate differential between the US Federal Reserve (1.75%) and the European Central Bank (0.00%) negatively affects the EUR/USD exchange rate.

Trading Recommendations

  • Support levels: 1.0188
  • Resistance levels: 1.0229, 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. At the moment, the price is trading below the moving averages, the MACD indicator is in the negative territory, and there are signals of divergence. Under these market conditions, short positions can be considered from the 1.0229 or 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 1.0188, but only with confirmation and short targets.

Alternative scenario: If the price breaks through the resistance level 1.0415 and is fixed above, it is likely that the uptrend will resume.

News Briefing for 2022.07.07:

  • – German industrial production in the eurozone (cubic meters) at 09:00 (GMT + 3);
  • – monetary policy meeting of the European Central Bank in the euro area (month / month) at 14:30 (GMT + 3);
  • – US Non-Farm Employment Change (MoM) at 15:15 (GMT +3);
  • – US Initial Jobless Claims (w/s) at 15:30 (GMT +3);
  • – US Federal Open Market Committee member Bullard speaking at 20:00 (GMT +3);
  • US FOMC member Waller speaks at 20:00 (GMT +3).

Currency pair GBP / USD

Technical indicators for the currency pair:

  • Previous conquest: 1.1933
  • Previous Close: 1.1921
  • % changing. Over the past day: -0.10%

More than 35 members of the British government resigned in less than 24 hours. One in five members of Parliament who have held public office has left office. Boris Johnson is ignoring calls to step down despite mass layoffs. “The prime minister’s job is to lead the country through difficult times,” he said. Mr Johnson added that millions voted for him and wondered if any potential successors could replicate his success in the next election. Despite the political problems, BoE chief economist Hugh Bell is confident the BoE will bring inflation back to its 2% target. However, he did not say when that would happen.

Trading Recommendations

  • Support levels: 1.1929
  • Resistance levels: 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, with the difference that the Pound is showing more stability. The price is trading below the moving averages, the MACD indicator is in the negative territory, and there are signals of divergence. Under these market conditions, short positions can be considered from the 1.2021 resistance level, but only after additional confirmation. It is better to look for long positions on the intraday time frames from the support level 1.1929, 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: 135.72
  • Previous Close: 135.93
  • % changing. Over the past day: +0.15%

Inflation expectations for Japanese households have intensified over the past three months, as the share of homes expects prices to rise next year, hitting a 14-year high. At the same time, the Bank of Japan said that it will not cancel the monetary stimulus plan because inflation is caused by the sharp rise in fuel and commodity prices caused by the Russian invasion of Ukraine.

Trading Recommendations

  • Support levels: 135.41, 134.11, 133.35, 131.67, 131.00, 130.12, 129.48, 128.76
  • Resistance levels: 135.87, 136.48

The medium-term trend of the USD/JPY is bullish. Buyer pressure in recent days is increasing again. The MACD indicator has become inactive as the price continues to form a broad equilibrium. Under such market conditions, buying from the support level of 135.41 can be considered, but with confirmation. The resistance level 135.87 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 Open: 1.3022
  • Previous Close: 1.3034
  • % changing. Over the past day: +0.09%

The Canadian dollar is a commodity currency, so it is highly dependent on instruments such as the dollar index and oil. The US dollar continued its rally yesterday, while WTI prices fell below $95 a barrel. As a result, the USD/CAD pair rose in the opening session but started to fall by the end of the day due to the recovery in oil prices. It should be noted that the Bank of Canada is on the way to tightening interest rates and is practically moving in line with the US Federal Reserve. The Federal Reserve rate is now 1.75%, and the Bank of Canada rate is 1.50%. This means that the Canadian dollar has a basis to strengthen, especially if oil prices start to rise again, which is very likely because there is still a lack of supply.

Trading Recommendations

  • Support levels: 1.2998, 1.2959, 1.2934, 1.2894
  • Resistance levels: 1.3035, 1.3052, 1.3077

In terms of technical analysis, the trend on the USD/CAD currency pair is bullish. The MACD indicator has fallen to zero. 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 1.3035, 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

News Briefing for 2022.07.07:

  • – Canada Ivy PMI (m/m) at 17:00 (GMT +3);
  • – US crude oil reserves (w / s) at 18:00 (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.


Investmacro products link



Source link

Add a Comment

Your email address will not be published.