Analytical overview of the major currency pairs in 2022.07.13 :: InvestMacro


by just forex

EUR/USD . currency pair

Technical indicators for the currency pair:

  • Previous Open: 1.0036
  • Previous Close: 1.0036
  • % changing. Over the past day: 0.00%

German ZEW Economic Sentiment dropped to -53.8 (-40.6 expected, -28 previous). For the Eurozone, the ZEW index fell to 51.1 (forecast -39, previous -28). The report notes that current serious concerns about energy supplies, an interest rate hike from the European Central Bank, and additional restrictions related to the epidemic in China, have led to a significant deterioration in the economic outlook. Experts assess the current financial situation much more negatively than it was in the previous month and lower their unfavorable forecast for the next six months. Today the US and some European countries will publish inflation data. Analysts expect a further rise in consumer prices. The US Consumer Price Index in June is expected to show an increase in inflation above the 8.6% year-over-year level.

Trading Recommendations

  • Support levels: 1.0000
  • Resistance Levels: 1.0185, 1.0221, 1.0284, 1.0365, 1.0415, 1.050

From a technical point of view, the trend on the EUR/USD currency pair on the hourly time frame is bearish. At the moment, the price is trading below the moving averages, and the MACD indicator is in the negative territory. However, the divergence has already been observed on several timeframes. Under these market conditions, short positions can be considered from the 1.0185 resistance level, but only after additional confirmation. It is better to look for long positions on the intraday time frames from the support level 1.0000, but only with confirmation and short targets.

Alternative scenario: If the price breaks through the resistance level 1.0364 and is fixed above, the uptrend is likely to resume.

News Briefing for 2022.07.13:

  • – German CPI for the Eurozone (monthly) at 09:00 (GMT +3);
  • – French CPI for the Eurozone (monthly) at 09:45 (GMT +3);
  • – Spanish Eurozone CPI (monthly) at 10:00 (GMT +3);
  • – Eurozone industrial production (m / m) at 12:00 (GMT +3).

Currency pair GBP / USD

Technical indicators for the currency pair:

  • Previous conquest: 1.1885
  • Previous Close: 1.1885
  • % changing. Over the past day: 0.00%

BoE Governor Andrew Bailey said nothing new in his speech yesterday. The main theses are as follows: a sustained drop in inflation to the 2% target is the BoE’s primary objective with no ‘if’ or ‘but’. The Committee will be particularly vigilant for signs of increasing sustained inflationary pressures and will respond aggressively if necessary.

Trading Recommendations

  • Support levels: 1.1877, 1.1801
  • Resistance levels: 1.2002, 1.2065, 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 is showing more flexibility. The MACD indicator is in the negative territory, but there are signs of divergence. Under these market conditions, short positions can be considered from the 1.2002 resistance level, but only after additional confirmation. It is better to look for long positions on the intraday time frames from the support level 1.1877 or 1.1801, 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 2022.07.13:

  • – UK GDP (m / m) at 09:00 (GMT + 3);
  • – UK industrial production (m / m) at 09:00 (GMT + 3);
  • – UK Industrial Production (m / m) at 9:00 (GMT +3).

Currency pair USD/JPY

Technical indicators for the currency pair:

  • Previous conquest: 137.42
  • Previous Close: 136.85
  • % changing. Over the past day: -0.42%

The situation on the USD/JPY currency pair remains the same. The huge gap between interest rates and completely opposite monetary policy has already led to USD/JPY prices reaching multi-year highs. The situation will not change soon, so traders should not rely on price reversal on fundamental factors.

Trading Recommendations

  • Support levels: 136.48, 135.92, 135.40, 134.64, 134.11
  • Resistance levels: 137.12, 137.48, 138.89

From a technical point of view, the medium-term trend of the USD/JPY pair is bullish. The MACD indicator is in the positive territory, and the price continues its upward trend. Under such market conditions, buying from the support level of 136.48 can be considered, but with confirmation. The resistance level 137.12 is good for short positions, but only with additional confirmation and short targets.

Alternative scenario: If the price holds below 135.93, 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 conquest: 1.2995
  • Previous Close: 1.3020
  • % changing. Over the past day: +0.19%

The Bank of Canada will hold its monetary policy and interest rate meeting today. Analysts expect the Bank of Canada to raise interest rates by 0.5%. However, there is still the potential for a sharper 0.75% increase as recent Canadian economic data shows signs of slowing and inflation expectations point to further growth in consumer prices. The increase should also be evaluated in conjunction with US inflation data, as the Canadian dollar is a commodity currency and depends on the dollar index and oil prices.

Trading Recommendations

  • Support levels: 1.2988, 1.2959, 1.2934, 1.2894
  • Resistance levels: 1.3050, 1.3113

In terms of technical analysis, the trend on the USD/CAD currency pair is bullish. The price is trading above the moving averages, and there is some buying pressure. In these market conditions, it is better to look for long positions on the lower time frames from the support level 1.2988 or 1.2959. For short positions, it is better to look at the resistance level 1.3050, 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 2022.07.13:

  • – US Consumer Price Index (m / m) at 15:30 (GMT + 3);
  • – Bank of Canada interest rate decision at 17:00 (GMT +3);
  • – Bank of Canada (BoC) monetary policy report at 17:00 (GMT + 3);
  • – US crude oil reserves (w / w) at 17:30 (GMT + 3);
  • – Bank of Canada press conference 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.


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