Technical Analysis Weekly 18.07.2022

Start your week by identifying the key price levels and trends. 

The SpreadEx Research team has analysed the most popular markets, including stocks, indices, commodities & forex.

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Wall Street (4 hours)

Wall Street successfully broke higher from a down-sloping channel after finding buyers near the 30,300 mark. The market is heading toward a strong resistance level from the June 28 peak which coincides with a bearish trendline. If the market manges to break this area of confluence the price could reach the next key resistance level around 33,200.

Source: SpreadEx 

UK 100 (4 hours)

UK 100 broke the bearish trend line to the upside after posting a double bottom pattern near the 7,000 mark. In addition, the index closed above the strong resistance level around the 7,200 mark. While above this level, there is a high chance that the buyers keep pushing the price to reach the 7,350 mark (June 28 high) by the end of the week.

Source: SpreadEx 

Germany 40 (4 hours)

The price of “GER40” reversed and moved higher after it  managed to break the bullish flag to the upside and now attempting to break and hold above a strong resistance level near the 12,985 mark. If the breakout is sustained above the pivot level (12,985), the price of “GER40” could reach the 13,350 level in the coming days.

Source: SpreadEx 

Gold (4 hours)

Gold is in a clear downward movement where lower lows and highs have been posted. The market is currently retracing to an area of confluence made by the resistance level (1,725) and the 61.80 % fibonacci retracement level. While the price remains within this channel, sellers might ride the downtrend back toward the 1,675 mark.

Source: SpreadEx 

Silver (4 hours)

The price of “Silver” is bouncing inside a bearish channel formation where lower highs and lows have been posted. The market currently is trying to reverse higher but it might encounter an area of confluence made by the resistance level formed by the July 7-14 peaks near the 1,935 mark. If the price closes and breaks the 1,935 mark then silver could trade back towards the 2,055 mark.

Brent Crude (4 hours)

Brent Crude Oil successfully broke the bearish trendline to the upside after posting an inverse head and shoulders. The bulls could be about to push the market toward the 107 mark, which has been S/R since mid-June. If more buyers join the uptrend above the 107 level, this could lead to a further movement to the upside toward resistance from the July high around 114.

Source: SpreadEx 

GBP/USD (4 hours)

The price of “GBP/USD” successfully broke the bearish channel to the upside after the buyers managed to reverse it with a V-bottom near the 1.18 mark. The price could be set to test the pivot level (1.20). If the breakout completes with a close over 1.20, the price could reach the 1.22 mark by the end of this week.

Source: SpreadEx 

EUR/USD (4 hours)

EUR/USD is no longer inside a bearish channel formation after the market posted an inverse head and shoulders near the 1.00 mark which led to a reversal and a move higher. If the price continues its move to the upside, there is a chance to see the EUR/USD reach the 1.04 mark.

Source: SpreadEx 

USD/JPY (4 hours)

The price of “USD/JPY” is still in an upward movement where the price is currently retracing 50% of its prior upswing where there is also support from the previous peak around 138. If more buyers join the up trend around this area, the market could test and break the 139 mark in the coming days.

Source: SpreadEx 

DXY (4 hours)

DXY couldn't continue its move upward where it faced strong resistance nera the 108.5/109 zone (just shy of the 110 round number). The price posted a head and shoulders, which led to a reversal and a move lower. The market now is testing the strong support around 107, the neckline of the H&S, and if it manages to break and close below it, the dollar index could reach the 105 mark.

Source: SpreadEx