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EUR/USD Targets Higher Gains, Gold Price Increases Higher

August 1, 2022 Technical Analysis

Key Take-Aways

  • Over 1.0180, the EUR/USD started an upward correction.
  • The 1.2050 resistance was broken as GBP/USD picked up speed.
  • Above the $1,740 resistance, the price of gold started to rise again.
  • In July 2022, the US ISM Manufacturing PMI could drop from 53 to 52.

Technical Analysis of EUR/USD

Above the resistance level of 1.0050 against the US Dollar, the euro began a new wave of recovery. The EUR/USD exchange rate rose above 1.0120 to enter a positive territory.

The pair was able to stabilize above the 1.0150 level and the 100 simple moving average on the 4-hours chart (red, 4-hours). The crucial slide from the 1.0614 swings high to 0.9955 low was broken by the pair, which also broke the 38.2 percent Fib retracement barrier.

Currently, resistance is present close to the 1.0285 level. It is close to the pivotal slide from the 1.0614 swing high to 0.9955 low, which is represented by the 50% Fib retracement level.

The pair could move higher if it can break over the next significant barrier, which is located close to the 200 simple moving average (green, 4-hours) at 1.0300. On the other hand, if EUR/USD is unable to rise over 1.0285, it may react negatively.

The 1.0185 level serves as a temporary support. If the pair drops below 1.0160 and the 100 simple moving average (red, 4-hours), they may continue to fall toward 1.0120. Any more losses might push the pair closer to the 1.0050 area.

When the GBP/USD pair managed to settle above the 1.2000 and 1.2050 resistance levels, a significant rebound wave was initiated.

Economic News to Trade Today

  • Manufacturing PMI for Germany is anticipated to be 49.2 in July 2022, up from 49.2 in July 2021.
  • Euro Zone Manufacturing PMI for July 2022 is forecasted at 49.6, up from the previous reading of 49.6.
  • The UK Manufacturing PMI in July 2022 is forecasted at 52.2 versus 52.2 previous.
  • The US ISM Manufacturing PMI is expected to be 52.0 in July 2022, down from 53.0 in July 2021.

Author:
Amogo Solomon is a Broker-Dealer/Market Research analyst and writer in ACT Brokers with a background in Computer Science, Data Analytics, and Forex Broker Dealing. He specializes in Forex Dealing, markets Analysis, Currency research, forex fundamental and technical analysis, and Monitoring of Forex trends, Stocks, Equities, Cryptos, and Commodities. He possesses strong technical and analytical skills and is well known for his entertaining and informative analysis of the global economy, fiat currency, commodities, Stocks, Indexes, Futures, and Options markets. He held a Bachelor's degree in Computer Science and Nanodegree in Programming for Data Science Enterprise.

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