July 6 2022
Technical Analysis for EURUSD, GBPUSD, & USDJPY
The EURUSD plunged yesterday to 20 year lows, on the back of renewed recession fears that will hamper the ECB from raising interest rates to fight inflation.
This morning the EUR is trying to find support at 1.0240/30 which if broken will see a drop to 1.0200 and possibly 1.0180/70 in extension.
The first resistance is at 1.0300/10, and then you will find stronger resistance at 1.0360/70, which should limit any corrective moves to the upside.
The Pound hit 1.1900 in yesterdays trade, and has since managed a small recovery. However, to relieve the immediate downside threat the GBPUSD needs to break back above 1.1980 resistance and head on up to the key pivot of 1.2040.
Failure to reach 1.1980 and 1.2040, would see the downside pressure return and place 1.1900 in danger of being breached and new lows being made.
USDJPY failed to capitalise on gains above 136.10 yesterday as the USDJPY rally fizzled out on pressure from JPY safe haven flows mostly out of the EUR,GBP etc.
However, support at 135.40/30 has so far held and while this level is intact, you should see the upside pressure return to push the USD towards 136.10 again. Above 136.10, resistance is found at 136.40.
If 135.30 support fails the next downside target will be 134.80 and possibly 134.40.
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