Analytical overview of the major currency pairs in 2022.07.18 :: InvestMacro


by just forex

EUR/USD . currency pair

Technical indicators for the currency pair:

  • Previous Open: 1.0012
  • Previous Close: 1.0087
  • % changing. Over the past day: +0.75%

Basically, Analytical House Strategists see no reason for a reversal in EUR/USD prices. The difference between interest rates in the US and the EU is large and will increase even more this month. Moreover, there is a political crisis brewing in Europe in addition to the energy crisis. After British Prime Minister Boris Johnson resigned last week, and Italian Prime Minister Mario Draghi’s bid to resign, clouds are now gathering around German Chancellor Schulz. High inflation, declining German economic indicators, and rumors of “rape drugs” are all factors that negatively affect the rating of the German chancellor, who came to power only a few months ago. The European Central Bank urgently needs to get involved in the fight against inflation, otherwise the situation in Europe could worsen with the onset of the downturn. New inflation data will be released on Tuesday of this week and the European Central Bank will hold its monetary policy meeting on Thursday when it is expected to see a 0.25% rise.

Trading Recommendations

  • Support levels: 1.0000, 1.0035
  • Resistance levels: 1.0147, 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 a downtrend. The price rose above the psychological level of 1.00 and is now trading between the moving averages. The MACD indicator has turned positive, and there is a slight buying pressure. Under these market conditions, short positions can be considered from the 1.0147 resistance level, but only after additional confirmation. It is better to look for long positions on the intraday time frames from the support level 1.0035, but only with confirmation and short targets.

Alternative scenario: If the price breaks through the resistance level 1.0221 and is fixed above, it is likely that the uptrend will resume.

There is no news feed for today.

Currency pair GBP / USD

Technical indicators for the currency pair:

  • Previous conquest: 1.1816
  • Previous Close: 1.1868
  • % changing. Over the past day: +0.44%

The difference in interest rates between the US Federal Reserve and the Bank of England is not significant, but it may change a lot by the end of this month. At the moment, the US Federal Reserve is holding rates at 1.75% and the Bank of England is keeping rates at 1.25%. However, the US Federal Reserve will raise the interest rate by another 0.75-1% at the next meeting, while the Bank of England intends to raise the rate by only 0.25%. This differentiation is not in the interest of the British pound. At the moment, the GBP/USD currency pair is trading at a 13-month low and many analysts are expecting a technical correction. However, basically, after a small correction, traders should once again expect a massive sell-off of the British currency amid problems in the UK economy, as well as due to the widening interest rate differential.

Trading Recommendations

  • Support levels: 1.1803
  • Resistance levels: 1.1916, 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 bearish. The situation is similar to the euro. The price is now trading between the moving averages, the MACD indicator is in the positive territory, and there is a slight buying pressure. Under these market conditions, short positions can be considered from the 1.1916 resistance level, but only after additional confirmation. It is better to look for long positions on the intraday time frames from the support level of 1.1803, but only with confirmation and short targets.



Alternative scenario: If the price breaks through the resistance level of 1.2003 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: 138.93
  • Previous Close: 138.45
  • % changing. Over the past day: -0.34%

It’s a bank holiday in Japan today, so volatility in the USD/JPY currency pair will be lower than usual. There are no major changes here at the moment. The Bank of Japan is maintaining its soft monetary policy, while the US Federal Reserve is on the way to raising interest rates significantly. This completely opposite policy has pushed the USD/JPY to a 24-year high. Until the end of the summer at least, the monetary policy of the central banks of Japan and the United States will remain unchanged.

Trading Recommendations

  • Support levels: 138.12, 137.70, 137.12, 136.48, 135.92, 135.40, 134.64, 134.11
  • Resistance levels: 138.71, 140.29

From a technical point of view, the medium-term trend of the USD/JPY pair is bullish. The MACD indicator turned negative, buyers pressure decreased, and the price corrected to average values. Under such market conditions, it is better to look for intraday long positions from the 138.12 or 137.70 support level, but with confirmation. The resistance level of 138.71 can be considered for short positions, but only with additional confirmation and short targets.

Alternative scenario: If the price holds below 136.48, 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: 1.3115
  • Previous Close: 1.3019
  • % changing. Over the past day: -0.73%

Wholesale sales in Canada rose 1.6% in May to $81.1 billion, the eighth increase in the past 10 months. Sales rose in five of the seven wholesale sub-sectors, accounting for 70% of wholesale sales. This is good data for the economy and the Canadian dollar in general. But keep in mind that the Canadian dollar is a commodity currency and also depends on the US dollar index and oil prices. The US dollar index fell on Friday, while oil prices rose, adding to confidence in the Canadian currency.

Trading Recommendations

  • Support levels: 1.2987, 1.2959, 1.2934
  • Resistance levels: 1.3106, 1.3154, 1.3236

In terms of technical analysis, the trend on the USD/CAD currency pair is bullish. But on Friday, the price corrected to the average values, and the MACD indicator turned negative. In these market conditions, it is better to look for long positions on the lower time frames after a slight dip to the 1.2987 or 1.2959 support level, but with confirmation. For short positions, it is better to look at the resistance level 1.3106, but it is also better with confirmation and short targets.

Alternative scenario: If the price breaks through the support level 1.2934 and consolidates below the support level 1.2934, 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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