Technical Analysis Jul.22nd

by on July 22, 2015 11:00 am BST


EUR/USD failed to consolidate below the May low at 1.0818, therefore giving bulls a chance to push the pair back to the upside. They used this opportunity and sent the Euro as high as 1.0940, thus making a 100-pip rebound on a daily basis and erasing losses of three previous days. EUR/USD is now being capped by the weekly pivot point at 1.0949, while daily indicators are invariably remaining bearish. As a result, the near-term outlook will depend on the ability of longs to close the pair above the mentioned resistance.


Traders’ Sentiment
Sentiment among SWFX market towards EUR/USD dropped noticeably in the past 24 hours, by losing eight percentage points from 55% to 47%.
EURUSD Pivot Levels Pivot Woodie Fibonacci
Resistance 3 1.1157 1.1171 1.1063
Resistance 2 1.1063 1.107 1.1003
Resistance 1 1.1 1.1014 1.0966
Pivot 1.0906 1.0913 1.0906
Support 1 1.0844 1.0858 1.0846
Support 2 1.0749 1.0756 1.0809
Support 3 1.0687 1.0701 1.0749


The Cable failed to appreciate yesterday, but 20 and 55-day SMAs still prevented the pair from edging lower. The support remains strong and is expected to cause the Sterling to finally rebound today. The immediate resistance cluster, namely the weekly and monthly PPs, are unlikely to prevent the Pound from surging. Thus, the 1.56 should be easily retaken, while a hike to 1.57 is also possible if the fundamental data provides a sufficient boost. Meanwhile, technical studies are giving mixed signals.

Traders’ Sentiment
Bullish traders’ sentiment returned to its Monday’s level of 52%, compared to 55% yesterday. The share of buy commands, on the other hand, increased to 55%, up from 53%.


GBPUSD Pivot Levels Pivot Woodie Fibonacci
Resistance 3 1.5649 1.5647 1.562
Resistance 2 1.562 1.5619 1.5596
Resistance 1 1.5587 1.5585 1.5581
Pivot 1.5558 1.5557 1.5558
Support 1 1.5526 1.5524 1.5535
Support 2 1.5497 1.5496 1.552
Support 3 1.5464 1.5462 1.5497


The USD/JPY currency pair suffered losses on Tuesday, edging below the 124.00 major level once again. Although the US Dollar keeps weakening against the Yen right now, a rebound is expected to take place by the end of the day. The Greenback is approaching the weekly PP support at 123.59, which is likely to turn the tide; while the fundamental data and the technical indicators are bolstering the possibility of a rally today. However, if the fundamental disappoint, we could still see a decline towards a strong cluster around 123.35.

Traders’ Sentiment
Market sentiment remains bullish, but at 69% (previously 70%), whereas the number of orders to purchase the Buck inched higher from 55 to 63%.
USDJPY Pivot Levels Pivot Woodie Fibonacci
Resistance 3 125.03 124.93 124.76
Resistance 2 124.76 124.71 124.48
Resistance 1 124.32 124.22 124.31
Pivot 124.04 123.99 124.04
Support 1 123.6 123.5 123.77
Support 2 123.33 123.28 123.6
Support 3 122.89 122.79 123.33


Gold was lower for the tenth straight day on Wednesday, as the Dollar continued to appreciate and its strength has impact on Dollar-denominated commodities. The gold futures traded 1% lower to $1,092.9 an ounce by 8:50 AM GMT. The possibility of a rate hike by the Fed later in the year is pushing the Greenback higher. In addition, investors are becoming more bullish in other asset classes and are buying less gold to hedge risk.


Crude oil prices fell on Wednesday, amid oversupply, declining global demand, stronger Dollar, and upcoming US crude stockpiles data. New York-traded Crude for September delivery fell 1.2% to $50.25 a barrel, while the London-traded Brent Crude lost 0.8% to $56.59 by 7:10 AM GMT. Commodity investors are expecting that the US crude inventories decreased by 1.7 million barrels last week.