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Daily Technical Insights 17 June 2022



EURUSD extends its gain for the second consecutive day after the Federal Reserve hiked interest rates by 75 basis points. The Dollar continues to lose steam as Fed chair Jerome Powell leaves an additional 75 basis point interest rate hike on the table for July. The weak U.S. job report also weakened the U.S. Greenback and added worries to a slowing U.S. economy. Eurozone CPI is set to release during the European trading session on the 17th.

On the technical side, EURUSD has rebounded strongly from our previously estimated support level of 1.03783. The 50% Fibonacci retracement at 1.0586 presents a near-term resistance level. RSI for the pair sits at 46.75, as of writing. On the four-hour chart, EURUSD currently trades below its 50, 100, and 200-day SMA.

Resistance: 1.07691

Support: 1.03783


GBPUSD extends its gains from the previous trading day. The BoE has hiked its rates for the fifth time of the year in an attempt to tame inflation. Economic guidance provided by the BoE remains gloomy as energy and food prices continue to soar; furthermore, the BoE has forecasted inflation to rise slightly above 11% by October. While the BoE is adamant about raising interest rates, the central bank is still juggling the possibility of stagflation in the near term.

On the technical side, GBPUSD has bounced strongly off our estimated support level of 1.20824. Near-term resistance sits at 1.25047 and 1.27143. RSI for the pair has recovered to 47.24, as of writing. On the four-hour chart, GBPUSD is currently trading below its 50, 100, and 200-day SMA.

Resistance: 1.25944

Support: 1.20824


USDJPY enters its second day of retreat as the U.S. Greenback loses demand. As the U.S. 10-year Treasury yield retreats below 3.4%, market participants are now turning their focus on the BoJ’s monetary policy announcement scheduled during the Asia trading session on the 17th. In the near term, the Japanese Yen remains weak compared to the U.S. Greenback as the Japanese central bank remains firm with their easy money policy.

On the technical side, USDJPY enters its second day of correction but support levels still hold firm at our previously estimated levels of 133.5 and 132.5. RSI for USDJPY currently indicates 56.2, retreating from overbought territory. On the four-hour chart, USDJPY currently trades above its 50, 100, and 200-day SMA.

Resistance: 134.56

Support: 133.5, 132.5

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