Technical Analysis for USDJPY, GBPUSD, & EURUSD
August 5 2022
US Non Farm Payrolls for July are released today, the market is expecting a number of around 250,000 new jobs to be added to the payroll, while unemployment remains steady at 3.6%
However, it is worth noting the pre-release technical picture as follows
Resistance remains strong at 134.40/60, as we saw another failed attempt to break up yesterday . The subsequent long liquidation and selling saw the USD drop back to 132.60, before regaining some ground back above 133.00. Strong support remains at 132.40/20
The pressure will remain on the dollars downside, unless it can regain momentum and break above 133.60 to then attempt 134.20 and the target 134.60.
Despite the Bank of England hiking UK interest rates 0.5% yesterday the GBPUSD was unable to break 1.2200/20 resistance. The result was a drop to 1.2070/60 support. However, the Pound has since recovered on broad dollar weakness.
The resistance at 1.2200 remains in place and is the barrier for further gains towards 1.2260 and 1.2300.
Support is going to be found at 1.2120/1.2100 and again at 1.2060.
EURUSD this week failed to take out 1.0280/1.0300 resistance and then failed to break support at 1.0120/1.0100. So the range remains intact. Will US NFP give the market the momentum to break the range? We will find out tonight.
The EURUSD looks like it wants to test resistance today, and if we clear 1.0280/1.0300 the target will be 1.0360.
For the EURUSD to maintain its upside momentum, support at 1.0200/1.0180 needs to hold. if we break below here then the market will switch its focus to the downside, and attack 1.0120/00 support.
Good luck today and look to trade responsibly with risk management.