8DC FX

Technical Analysis for EURUSD, USDJPY, & GBPUSD

July 13 2022

The key to all currency moves right now is the fight against inflation, and the global tightening of central bank policy. Today the US will release its CPI for June, economist’s expect a headline inflation number of 8.8% up from 8.6% in May.

EURUSD

Having flirted with parity 1.0000 yesterday the EUR managed to recover some poise and made it back up to resistance at 1.0070/80.

However, as always the EUR failed to break the resistance, and has since lost some momentum and now looks likely to have another attempt at 1.0000 support. Which if broken would see 0.9950/40 as the next target.

If the EUR can recover and break the first resistance at 1.0070/80, the next target would be 1.0110/20. Direction today will depend on the US CPI headline.

USDJPY

USDJPY D1

After recording a new multi year high at 137.70 .the USD saw some pressure from profit taking on long USD positions, and JPY buying against the EUR & GBP.

USDJPY tested and found strong support at 136.60/50, and has recovered to test 137.30/40 resistance this morning. A break up here would see another attempt at 137.70 and possibly new highs close to 138.00.

However, a failure to break higher would lead to a drift lower to support first at 136.80, and then possibly 136.50.

GBPUSD

The GBPUSD made a strong recovery from the low of 1.1810 and tested 1.1910 Resistance. However, the resistance is still intact after a number of failed attempts higher.

First support is now at 1.1860/50, if this level holds there is a chance for more upside attempts on 1.1910, which if it is broken the next target is going to be 1.1940/50.

Failure to hold support at 1.1850 will open up a drop to 1.1810/1.1800 and possibly 1.1760 in an extended down move.

Trade at http://www.8dcglobal.com

Published by Neil Callard

Forex Trader and Educator. 30 years trading experience, of which 20 years was market making in major currencies in large international financial institutions.

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