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Daily Technical Insights 09 June 2022



EURUSD rose ahead of the ECB interest rate decision. Despite the rising U.S. 10 year treasury yield, the Dollar remains weak amidst growing concerns in the U.S. EU GDP for the first quarter of the year was upwardly revised to 0.6%, quarter over quarter, thus buoying the shared currency. Market participants will be focused on the ECB interest rate decision, which will be coming in during the European trading session. The ECB is not expected to raise interest rates, but some analysts are predicting an end to the negative interest rate environment by the end of the year.

On the technical side, EURUSD still trades below our estimated resistance level at 1.07614, but support levels at 1.0695 were successfully defended by yesterday’s market close. RSI for the pair currently sits at 54.87. On the four hour chart, EURUSD currently trades above its 50, 100, and 200 days SMA.

Resistance: 1.07614, 1.07864

Support: 1.0695, 1.06816


GBPUSD lost its two-day winning streak and is heading lower once again, despite a broad-based Dollar weakness. The economic outlook for the U.K. remains gloomy as inflation and rising interest rates continue to bite into upward momentum. The BoE finds itself in a precarious position as further interest rate hikes to tame inflation could disproportionately hurt U.K.’s economic growth. The Fed, on the other hand, still has tightening power as the U.S. economy remains robust.

On the technical side, Cable still faces its near term resistance level at 1.25691. The support level for Cable remains around the 1.2453 price region, but that level is weak as Cable dipped below the 1.245 level during yesterday’s trading but was able to close above. RSI for the pair sits at 49.07, as of writing. On the four hour chart, Cable currently trades below its 50, 100, and 200 days SMA.

Resistance: 1.25691, 1.26539

Support: 1.24539


USDJPY has continued to soar, even though the Dollar has lost steam during Wednesday’s trading. The Japanese Yen continues to fall against the U.S. Greenback as the BoJ insists on defending its near-zero target for the 10-year yields. The falling exchange rate, however, could be a positive sign for Japan as the country begins to open its borders to tourists. The Japanese export and tourism-focused economy could benefit from a revived tourism scene and an easing supply chain as China winds down its Covid lockdown policies.

On the technical side, USDJPY has broken above our estimated resistance level at 133 and is marching towards record highs. Near term, resistance is projected to be around the 135 price region while support levels at 130 remain firm. RSI for the pair sits at 75.56, as of writing. On the four hour chart, USDJPY currently trades well above its 50, 100, and 200 days SMA.

Resistance: 133

Support: 130

Note: The information is provided for reference purposes only and doesn’t take into account your personal objectives, financial circumstances, or needs, and does not constitute investment advice. We encourage you to seek independent advice if necessary. VT Academy will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.