Weekly Market Report: July 5, 2022
The knowledge you need to trade in the upcoming week. Keep up the pace with the market’s twists and turns!
July 5, 2022
Gold pressured; Currencies trade mixed ahead of data
Last: 31,097
Pivot: 30,450
Review:
US Stock futures were higher overnight trading on Monday, with major benchmark averages remaining closed during regular hours for US Independence Day after closing out the previous week with significant losses. Dow Jones Futures added 0.2%, S&P 500 Futures lifted 0.3% while the Nasdaq 100 Futures gained 0.7%.
Technical comment:
The next resistance levels are at 31380 and then at 31750.
Preference scenario:
An opportunity to go long will present itself if the price breaks out above 30450, with targets at 31380 and 31750 in extension.
Alternative scenario:
A breakout below 30450 would call for 30070 and 29660 as downside targets.
| Resistance | 31,380 | 31,750 | 32,050 |
| Support | 30,450 | 30,070 | 29,660 |
Last: 135.87
Pivot: 135.5
Review:
USDJPY picks up bids to extend the week-start rebound amid cautious optimism. USDJPY holds onto the week-start recovery around 136.00 as Tokyo opens on Tuesday.
Technical comment:
The RSI is bullish and calls for further upside.
Preference scenario:
Traders looking to enter long positions may have a chance to do so should the price break out above 135.50, with targets at 136.10 and 136.40 in extension.
Alternative scenario:
Alternatively, if the price breaks out below 135.50, the further downside path will be open, with 135.20 and 134.90 as targets.
| Resistance | 136.1 | 136.4 | 136.75 |
| Support | 135.5 | 135.2 | 134.9 |
Last: 1,808
Pivot: 1,802
Review:
Gold Price (XAU/USD) remains pressured around $1,807, after beginning the week’s trading on a negative side, as traders stay worried ahead of crucial catalysts up for publication during the week.
Technical comment:
The RSI lacks downward momentum.
Preference scenario:
Buyers may find the opportunity to go in should the price break out above 1802.00, with targets at 1814.00 and 1819.00 in extension.
Alternative scenario:
A slide below 1802.00 would open the path to 1797.00 and 1792.00 as downside targets.
| Resistance | 1,814 | 1,819 | 1,825 |
| Support | 1,802 | 1,797 | 1,792 |
Last: 110.41
Pivot: 109
Review:
Oil grinds higher after rising for two consecutive days. WTI bulls flirt with $109.00, around $108.65-70 by the press time of Tuesday’s Asian session, after rising for the last two days.
Technical comment:
The RSI is above its neutrality area at 50%.
Preference scenario:
If the price manages to rise above the 109.00 mark, the further upward path will be open, with targets at 111.30 and 112.40 in extension.
Alternative scenario:
A downslide below 109.00 would call for 107.20 and 106.00 next.
| Resistance | 111.3 | 112.4 | 114 |
| Support | 109 | 107.2 | 106 |
Last: 1.0431
Pivot: 1.041
Review:
EURUSD is attempting to move higher in a risk-on start in Tokyo as the US dollar struggles to pick up demand on Tuesday. The pair is consolidating in a 4-hour 100 pip bow between 1.0400 and 1.0500 which has been established in the first week of the new month while the price carves out a daily triple bottom.
Technical comment:
The RSI is primed for a bounce.
Preference scenario:
A price jump above 1.0410 would call for 1.0460 and 1.0485 in extension.
Alternative scenario:
A drop below 1.0410 would open the downside, with 1.0390 and 1.0370 as targets.
| Resistance | 1.046 | 1.0485 | 1.051 |
| Support | 1.041 | 1.039 | 1.037 |
Last: 1.211
Pivot: 1.208
Review:
GBPUSD remains sidelined as it portrays a bullish chart formation. GBPUSD holds onto the previous day’s breakout of a weekly resistance despite taking rounds to 1.2100 during Tuesday’s initial Asian session.
Technical comment:
Although a continuation of the consolidation cannot be ruled out, its extent should be limited.
Preference scenario:
Long positions will be favoured if the price surpasses the 1.2080 mark and continues climbing towards1.2145 and then 1.2165 in extension.
Alternative scenario:
A breakout below 1.2080 would open the downside, with 1.2060 and 1.2040 as targets.
| Resistance | 1.2145 | 1.2165 | 1.2185 |
| Support | 1.208 | 1.206 | 1.204 |
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