Analytical overview of the major currency pairs in 2022.07.21 :: InvestMacro


by just forex

EUR/USD . currency pair

Technical indicators for the currency pair:

  • Previous Open: 1.0222
  • Previous Close: 1.0181
  • % changing. Over the past day: -0.40%

The much awaited European Central Bank meeting will take place today, and the European Central Bank is expected to raise interest rates. Analysts are leaning towards a 0.25% rise, although talk of a 0.5% rise as well. Christine Lagarde will not risk her reputation, so it is easier for the ECB to make the first rate hike of 0.25% and the next of 0.5% or even 0.75%. Investors’ attention will also be directed towards the so-called “anti-fragmentation” package, which is expected to be announced along with the rate decision.

Trading Recommendations

  • Support levels: 1.0154, 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 is bullish. But yesterday the price corrected a little and the MACD indicator became inactive. In such market conditions, it is better to look for long positions on the intraday time frames from the support level 1.0106, but only with confirmation. Short positions can be considered from the resistance level 1.0284, but only after additional confirmation and only with 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 2022.07.21:

  • – Eurozone monetary policy statement by the European Central Bank at 15:15 (GMT +3);
  • – European Central Bank interest rate decision in the eurozone at 15:15 (GMT + 3);
  • – US Initial Jobless Claims (w/s) at 15:30 (GMT +3);
  • – US Philadelphia Fed Manufacturing Index (MoM) at 15:30 (GMT +3);
  • – European Central Bank press conference in the Eurozone at 15:45 (GMT +3).

Currency pair GBP / USD

Technical indicators for the currency pair:

  • Previous conquest: 1.1988
  • Previous Close: 1.1978
  • % changing. Over the past day: -0.08%

In the UK, the CPI came to 9.4% y/y compared to 9.1% in May. The monthly inflation rate increased by 0.8%. The largest increasing contributions to the annual rate of inflation have been household services (mainly electricity, gas and other fuels) and transportation (mainly due to higher gasoline and diesel prices). This level of inflation was last seen in the country in March 1991. The Bank of England is likely to raise the interest rate immediately by 0.5% at its next meeting.

Trading Recommendations

  • Support levels: 1.1955, 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 is bullish. The price has corrected a little and is trading at the level of the moving averages. The MACD indicator has become inactive. In these market conditions, it is better to look for long positions on the intraday time frames from the support level 1.1955 or 1.1907, 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

There is no news feed for today.

Currency pair USD/JPY

Technical indicators for the currency pair:

  • Previous conquest: 138.65
  • Previous Close: 138.27
  • % changing. Over the past day: -0.27%

The Bank of Japan kept interest rates and monetary policy unchanged. The monetary policy report highlights concerns about the economy above any potential effects on the yen. The Bank of Japan lowered its economic growth forecast for this year, so the sluggish economy needs continued support. Inflation forecast is 2.3% for the end of the year. Thus, the BoJ is still targeting stimulus despite the wave of rate hikes by other central banks. The medium-term bullish trend of the USD/JPY continues.

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 turned positive, but the price is still in equilibrium. Under these market conditions, intraday longs can be sought from the 137.67 support level, but with confirmation. For short positions, traders can look at the 138.71 resistance level, 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

News Briefing for 2022.07.21:

  • – BoJ forecast report at 06:00 (GMT +3);
  • – Bank of Japan interest rate decision at 06:00 (GMT +3);
  • – Bank of Japan press conference at 06:00 (GMT +3).

Currency pair USD/CAD

Technical indicators for the currency pair:

  • Previous conquest: 1.2868
  • Previous Close: 1.2880
  • % changing. Over the past day: +0.09%

Canada’s consumer price level rose 0.7% last month, double expectations. But the country’s annual inflation was 8.1% after 7.7% in May. This is the highest rate since January 1983. Excluding gasoline and food prices, the CPI reached 6.5% on an annual basis in June after 6.3% in May. The acceleration in June was mainly due to higher gasoline prices, but price increases remained broad, with seven of the eight major components rising 3% or more. Thus, there is no evidence of slowing inflation, which means that the Central Bank of Canada will keep pace with the US Federal Reserve and raise 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 is bearish. The price is trading below the moving average lines. 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 seen 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

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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