Analytical overview of the major currency pairs in 2022.07.20 :: InvestMacro


by just forex

EUR/USD . currency pair

Technical indicators for the currency pair:

  • Previous Open: 1.0137
  • Previous Close: 1.0221
  • % changing. Over the past day: +0.82%

The annual inflation rate in the eurozone in June 2022 was 8.6%, compared to 8.1% in May. A year ago, the rate was 1.9%. Malta (6.1%), France (6.5%) and Finland (8.1%) had the lowest annual rates. The highest annual rates were in Estonia (22.0%), Lithuania (20.5%) and Latvia (19.2%). European Central Bank policy makers are considering raising interest rates by more than 50 basis points at their meeting on Thursday to combat record high inflation. The Euro is rising based on these expectations.

Trading Recommendations

  • Support levels: 1.0147, 1.0106, 1.0035, 1.0000
  • Resistance Levels: 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 has changed to the upside. The price consolidated above the moving averages and broke through the priority change level. The MACD indicator is in the positive territory with no signs of a reversal. Under these market conditions, it is better for longs to look at the intraday time frames from the 1.0147 or 1.0106 support level, but only with confirmation. Short positions can be considered from the resistance level 1.0284, but only after additional confirmation and with only short targets.

Alternative scenario: If the price breaks through the 1.0000 support level and is fixed below, the downtrend is likely to resume.

News Briefing for 20.07.2022:

  • – US Existing Home Sales (month / month) at 17:00 (GMT + 3);
  • – US crude oil reserves (w / s) at 17:30 (GMT +3).

Currency pair GBP / USD

Technical indicators for the currency pair:

  • Previous conquest: 1.1945
  • Previous Close: 1.1997.1997
  • % changing. Over the past day: +0.43%

The latest labor market estimates from March to May 2022 show that the employment rate rose during the quarter, while the unemployment rate and economic inactivity in the UK declined. The unemployment rate fell from March to May 2022 to 3.8%. The number of job vacancies increased from April to June 2022 to 1,294,000. However, the rate of job growth continues to slow. Overall, the labor market remains strong, which opens the way for the Bank of England to act more aggressively in raising interest rates. Bank of England Governor Andrew Bailey said in a speech yesterday that the Bank of England will consider raising the interest rate by 0.5% in August, which will speed up the fight against inflation.

Trading Recommendations

  • Support levels: 1.2008, 1.1980, 1.1907, 1.1803
  • Resistance levels: 1.2065, 1.2137

From a technical point of view, the trend on the GBP/USD currency pair on the hourly time frame has also changed to the upside. The price consolidated above the moving averages and broke through the priority change level. The MACD indicator is in the positive territory, but there are signs of divergence and the bullish momentum is fading. In these market conditions, it is better to look for long positions on the intraday time frames from the support level 1.2008 or 1.1980, but only with confirmation. Intraday short positions can be considered from the resistance level 1.2065, but only after additional confirmation and with short targets.

Alternative scenario: If the price breaks through the support level 1.1803 and is fixed below, the downtrend is likely to resume.

British Pounds / US Dollars

News Briefing for 20.07.2022:

  • – UK CPI (m/m) at 09:00 (GMT +3).

Currency pair USD/JPY

Technical indicators for the currency pair:

  • Previous Conquest: 137.99
  • Previous Close: 138.18
  • % changing. Over the past day: -0.14%

There are no major changes here at the moment. The Bank of Japan maintains a soft monetary policy, while the US Federal Reserve is on the path of significantly raising interest rates. 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 the same. Japan’s inflation data will be released at the end of this week, which may affect the BoJ. But until then, the price is likely to balance out in a narrow range.

Trading Recommendations

  • Support levels: 137.67, 137.43, 137.13, 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 has become inactive, and the price is forming a equilibrium. Under such market conditions, it is better to look for intraday long positions from the 137.67 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 137.13, 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: 1.2971
  • Previous Close: 1.2869
  • % changing. Over the past day: -0.79%

Canada is one of the largest oil producers in the world, and has large reserves. Canada is also the third largest exporter of oil: about 99% of its exports go directly to its neighbor, the United States. This is why the Canadian dollar is a commodity currency and is highly dependent on oil prices and the US dollar index. The US dollar index continued its decline yesterday, while oil prices rose above $100 a barrel. This gave confidence to the Canadian currency. Canadian inflation data will be released today, and analysts are expecting another jump in consumer prices. The strengthening of the national currency is usually accompanied by a rise in inflation amid expectations that the central bank will be more aggressive in raising interest rates.

Trading Recommendations

  • Support levels: 1.2853, 1.2781
  • Resistance levels: 1.2934, 1.3006, 1.3085, 1.3154

In terms of technical analysis, the trend on the USD/CAD currency pair has changed to the downside. The price has been consolidated below the moving lines and has split the priority change level. The MACD indicator is in the negative territory, the pressure of the sellers is still in place, but there are the first signs of divergence. Under these market conditions, it is better to consider short positions from the 1.2934 resistance level, but with confirmation. Long positions should be considered on the lower time frames from the 1.2853 support level, but only with confirmation and short targets.

Alternative scenario: If the price breaks and consolidates above the resistance level 1.3085, the uptrend is likely to resume.

US dollar / Canadian dollar

News Briefing for 20.07.2022:

  • – Canadian CPI (m/m) at 15:30 (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

  • Canadian company with promising assets in the “Lithium Triangle” 20 July 2022
  • Morey Math Lines 20.07.2022 (USDJPY, USDCAD) 20 July 2022
  • Forex Technical Analysis and Forecast 20.07.2022 20 July 2022
  • UK inflation has reached 9.4% which shows that the Bank of England is shamefully incompetent 20 July 2022
  • Analytical Overview of Major Currency Pairs in 2022.07.20 20 July 2022
  • Investors are turning their attention to earning season 20 July 2022
  • Patients in the Phase 2A Algeron study showed improved lung capacity 20 July 2022
  • The discovery of lithium LIT may increase the stock price July 19, 2022
  • Advance renewal is imminent as banks create more liquidity to support debt July 19, 2022
  • Why are drug names long and complicated? The pharmacist explains the reasoning behind the label July 19, 2022



Source link

Add a Comment

Your email address will not be published.