Technical Analysis Weekly 25.07.2022

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 is trading inside a bullish channel formation where the price found support near the 31,700 mark. From this level we suspect buyers may rejoin the uptrend and push the price all the way up towards the next resistance level (32,700). A drop under 31,300 would negate this bullish view.

Source: SpreadEx 

UK 100 (4 hours)

UK 100 is in a clear uptrend where higher highs and lows have been posted. The price is bouncing inside a bullish wedge pattern where there higher probability move is a breakout higher. If this scenario occurs along with a close above the pivot level (7,350), the market could continue its move to the upside toward the 7,540 mark. However, A move below the 7,200 could undo the bullish momentum.

Source: SpreadEx 

Germany 40 (4 hours)

GER40 is in an uptrend where its price entered a bullish flag formation after bouncing from the 61.8% fibonacci retracement level. A break and close above the pivot level would indicate the market could reach 13,875 by the end of the week. A failure in breaking the 13,380 mark could lead to a move toward 13,000.

Source: SpreadEx 

Gold (4 hours)

After posting an engulfing bullish pattern the price of Gold broke above the bearish channel  and closed above the pivot level. However, the breakout looks weak since a big bearish bodied bar was posted at this zone, which could lead to a reversal and a move to the downside toward the 1,675 mark. However, if the price stays above the 1,725 mark we could see gold reaching the 1,760 mark.

Source: SpreadEx 

Silver (4 hours)

The price of Silver is bouncing inside a triangle formation right under the resistance level (18.70). Since the market is in a downtrend, we could see a breakout to the downside, where more sellers could push it all the way down toward the 1,740 mark. A breakout of the wedge formation to the upside could lead the price to reach the 2,015 mark.

Brent Crude (4 hours)

After posting an inverse head and shoulders pattern near the support level, the market hit resistance at 107, where a pullback has created a bullish flag formation. If buyers push the price higher from this pattern and above the 107 mark, the price of UKBRENTOIL could reach 114. The less likely scenario is a failure to move over 107, which could lead to a move down towards the 98 mark.

Source: SpreadEx 

GBP/USD (4 hours)

The price of GBP/USD successfully broke above a bearish channel after a V-bottom near the 1.18 mark. The price is in a consolidation phase under the 1.20 mark where the price found more buyers near the 50% fibonacci retracement. If the market breaks the pivot level to the upside, this could lead to a move higher toward 1.22. Otherwise if the Pound fails to break the 1.20 mark, it could take the price back to the 1.18 level.

Source: SpreadEx 

EUR/USD (4 hours)

EUR/USD successfully broke the bearish trend line to  the upside after finding buyers near the 0.99 mark. The price now entered into a consolidation period where a breakout to the upside could be seen before a move all the way up toward the 1.03 mark. A less likely scenario is for the EUR/USD to  reverse lower again from the consolidation to test the previous support near 0.99.

Source: SpreadEx 

USD/JPY (4 hours)

The price of “USD/JPY” broke below the bullish trend line after posting a double top formation. The market is now posting lower lows and highs, signalling that sellers are in clear control. A slight correction to the upside could be seen before a new bearish impulsive wave that could push toward the 134 mark. In case the USD/JPY rebounds and closes above the 136 mark, this could lead to a reversal and a move higher toward the 139 level.

Source: SpreadEx 

USD/CAD (4 hours)

USD/CAD is trending to the downside where lower highs and lows have been posted. The price looks set to break beneath the consolidation phase. If this scenario occurs along with a break and close below the 1.28 mark, the price could reach 1.25 in the coming days. We used the AB=CD pattern to recognize how far the prices could move to the downside. However, if the market closes above the 1.29 mark, it could lead to a move higher toward 1.30.

Source: SpreadEx