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Daily Technical Insights 22 July 2022



Following a larger-than-anticipated increase in interest rates by the ECB, the EURUSD gains ground.

From a technical standpoint, the four-hour picture turns positive; the EURUSD continues to climb after hitting a low in mid-July. The pair advances alongside the upward trend line and the 20 Simple Moving Average. However, bulls of the EURUSD face rejection after hitting the upper Bollinger Band band and the overbought zone of the RSI indicator; sellers of the EURUSD look to take action, leaping in significantly to keep the dominating bearish in place. At the time of writing, EURUSD is clinging to the ascending trend line; bulls will continue to gain if EURUSD can hold above the level, then proceed to the next immediate resistance level at 1.0304. Alternatively, if EURUSD goes below the trend line, it will turn bearish in the short term, inviting additional follow-through selling.

Resistance: 1.0266, 1.0363, 1.046

Support: 1.0146, 0.9952


At the time of writing, gold is trading above $1,710 after recovering from a new 2022 bottom of $1,680.82. Following the announcement of the ECB’s monetary policy decision, the US dollar weakens, hence strengthening gold.

Technically speaking, gold indicates at a bullish correction as it has officially breached the bearish channel and the middle line of the Bollinger Band, indicating that bulls are initiating the upward momentum. Currently, the RSI indicator leans into positive territory on the four-hour chart, indicating that buyers have re-entered the market and sellers have exited. Gold is anticipated to rise towards the immediate resistance level of $1,727.58. If, on the other hand, gold is unable to keep its momentum above the negative channel, gains will be restricted and further selling pressure will ensue.

Resistance: 1727.58, 1756.40, 1779.70

Support: 1680.99


After breaking the downward trend line in mid-July, the AUDUSD four-hour chart flips upside down. The four-hour chart reveals that AUDUSD closes above the 20 SMA but below the longer SMA, indicating that AUDUSD has not yet fully turned bullish over the longer term. The breach of the current resistance will propel AUD to the next level at 0.6982. Failure to overcome the current resistance level would result in a short-term AUD low of 0.6824.

Resistance: 0.6911, 0.6982, 0.7053

Support: 0.6824, 0.6682

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.