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Daily Technical Analysis


Yesterday, the pair continued to lose ground against the U.S. dollar, reaching the support at 1.1320. It seems that the bears have started to lose momentum and, at the time of writing, the price is hovering around the mentioned support. The forecast for today’s trading session is for the pair to rebound from this support and to be traded in the range between 1.1320 – 1.1360. On the other hand, the downward movement may be expected to continue, but only in case the bears manage to violate the support at 1.1320. If this happens, then the pair may head towards the critical support at 1.1272. The data on the building permits for the U.S., which is to be announced today at 13:30 GMT, is expected to cause a spike in volatility.


After the pair rebounded from the resistance at 115.00, the bears couldn’t gain enough momentum to test the support at 114.28. A possible scenario for today’s trading session is for the bulls to try to reclaim their control over the market and to attack the resistance at 115.00. In case the mentioned level is successfully violated, then this would pave the way for the pair towards the next resistance at 115.63. In the opposite direction, the first important support can be found at 114.28.


The current situation for the pair is similar to that of the EUR/USD. The market sentiment remains negative and the sell-offs may deepen, heading the pair towards the zone of 1.3555 – 1.3507. However, the bulls may try to intervene and limit the sell-offs, so a short-term correction towards 1.3650, before the confirmation of a potential downward movement, is not to be excluded.


During yesterday’s trading session, the German index recorded significant losses and fell 1.76%. However, the bulls managed to enter the market and this led to a fake breach of the support at 15711. Afterwards, the index started consolidating in the narrow range of 15711 – 15835. After reaching record values in the last months, it seems that the bulls have started losing their positions and the sell-offs may deepen, which could lead to a reversal of the long-term uptrend. A confirmed breach of the critical support at 15711 that is coming from the higher time frames would signal for a further impulsive downward movement towards 15518. Until the bears attack the mentioned support, however, trading activity may remain limited to the narrow range of 15711 – 15835.


The U.S. blue-chip stock index has also been hit hard over the past few days, losing just over 1.8% of its value in the last trading session alone and reaching the support zone at 35375. This situation was largely the result of the poorer-than-expected Q4 results of Goldman Sachs and due to the rising bond yields in the U.S. At the time of writing, the index is testing the support at 35375 and the forecasts are for the bears to prevail and violate this level, heading the price towards the support at 35375. In the opposite direction, the first important resistance sits at 35900.

DeltaStock Inc.
These analyses are for information purposes only. They DO NOT post a BUY or SELL recommendation for any of the financial instruments herein analyzed. The information is obtained from generally accessible data sources. The forecasts made are based on technical analysis. However, Delta Stock’s Analyst Dept. also takes into consideration a number of fundamental and macroeconomic factors, which we believe impact the price moves of the observed instruments. Delta Stock Inc. assumes no responsibility for errors, inaccuracies or omissions in these materials, nor shall it be liable for damages arising out of any person's reliance upon the information on this page. Delta Stock Inc. shall not be liable for any special, indirect, incidental, or consequential damages, including without limitation, losses or unrealized gains that may result. Any information is subject to change without notice.

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