Analytical overview of the major currency pairs in 2022.07.11 :: InvestMacro


by just forex

EUR/USD . currency pair

Technical indicators for the currency pair:

  • Previous Conquest: 1.0161
  • Previous Close: 1.0185
  • % changing. Over the past day: +0.23%

The euro fell to a new two-decade low against the US dollar on Friday amid fears that the eurozone economy is sliding into recession. Last week, investors focused on the FOMC protocol and US non-farm payrolls data. The FOMC meeting minutes showed that the Fed was likely to raise rates by 0.75% at the July meeting, and the strong jobs report raised the odds of a rate hike by 75 basis points. The interest rate differential between the US Federal Reserve and the European Central Bank has already resulted in 1 dollar being roughly equal to 1 euro.

Trading Recommendations

  • Support levels: 1.0135
  • Resistance levels: 1.0221, 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. Currently, the price is trading below the moving averages, the MACD indicator has become inactive, but there is a strong divergence. Under these market conditions, short positions can be considered from the 1.0221 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 1.0135, 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 2022.07.11:

  • FOMC member Williams speaking at 21:00 (GMT +3).

Currency pair GBP / USD

Technical indicators for the currency pair:

  • Previous Conquest: 1.2021
  • Previous Close: 1.2026
  • % changing. Over the past day: +0.04%

The fight for the Prime Minister’s seat begins in the UK. Boris Johnson will remain in power until a new leader is elected, which will take about six weeks. This week, investors are waiting for UK GDP data. It may add to the problematic background of the pound sterling. The Governor of the Bank of England will deliver a speech today and may explain the state of the British economy and how the BoE will respond to current market pricing.

Trading Recommendations

  • Support levels: 1.1960, 1.1929
  • Resistance levels: 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. Unlike the euro, the pound showed more stability. Currently, the price is trading between the moving averages, the MACD indicator is positive, and there is a slight pressure from the buyers. Under these market conditions, short positions can be considered from the 1.2065 resistance level, but only after additional confirmation. It is better to look for long positions on the intraday time frames from the support level 1.1960 or 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

News Briefing for 2022.07.11:

  • – Bank of England Governor speaking at 17:15 (GMT +3).

Currency pair USD/JPY

Technical indicators for the currency pair:

  • Previous conquest: 136.01
  • Previous Close: 136.03
  • % changing. Over the past day: +0.01%

Bank of Japan Governor Kuroda said that the Japanese financial system is generally stable despite the economic instability. At the same time, the Bank of Japan will continue to stick to the ultra-soft monetary policy and is ready to soften the policy without hesitation if necessary. And although core inflation has already held above the BoJ’s 2% target. Against the background of this data, the Japanese yen began to decline further, and the dollar / yen prices renewed their multi-year historical high.

Trading Recommendations

  • Support levels: 136.48, 135.92, 135.40, 134.64, 134.11
  • Resistance levels: 137.48, 138.89

From a technical point of view, the medium-term trend of the USD/JPY pair is bullish. The MACD indicator turned positive, and the price continued its upward trend. Under such market conditions, buying from the support level of 136.48 can be considered, but with confirmation. The resistance level 137.48 is good for short positions, but only with additional confirmation and short targets.

Alternative scenario: If the price holds below 134.64, the downtrend is likely to resume.

US dollar / Japanese yen

News Briefing for 2022.07.11:

  • – BoJ Gov Kuroda speaks, temporarily.

Currency pair USD/CAD

Technical indicators for the currency pair:

  • Previous Conquest: 1.2975
  • Previous Close: 1.2936
  • % changing. Over the past day: -0.30%

Labor market data on Friday showed that the number of jobs in Canada fell by 43,200 last month. At the same time, the unemployment rate fell from 5.1% to 4.9%. The country’s inflation rate is currently around four times the Bank of Canada’s 2% target, indicating a rate hike of 0.75% this week instead of a 0.5% increase. The Bank of Canada is scheduled to meet on July 13.

Trading Recommendations

  • Support levels: 1.2934, 1.2959, 1.2894
  • Resistance levels: 1.3021, 1.3052

In terms of technical analysis, the trend on the USD/CAD currency pair is bullish. The price has corrected to the average values, and the MACD indicator has become inactive. In these market conditions, it is better to look for long positions on the lower time frames from the support level 1.2959 or 1.2934. For short positions, it is better to look at the resistance level 1.3021, 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

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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