Daily Technical Insights 29 July 2022

　　

XAUUSD

The metal, XAUUSD, gathers bullish momentum for the second day after the US data showed that the economy contracted in the second quarter, thus boosting XAUUSD.

From the technical perspective, XAUUSD builds on the overnight upside rebound above the resistance of 1748. The upward breakout gained some follow-through traction on Thursday. The four-hour outlook turns bullish as XAUUSD lands within the upper bounce of the Bollinger band and the RSI indicator hovers within the positive territory. XAUUSD might consolidate slightly above and below 1748 as the RSI has reached the overbought condition. Stably sustaining above the level would support XAUUSD’s upside.

Resistance: 1769, 1790, 1815

Support: 1748, 1722, 1680

USDJPY

USDJPY falls sharply following the less hawkish Fed.

From the technical perspective, USDJPY surrenders after failing to defend the crucial support level of 136.26 in the early Asian session. The intraday decline has pushed USDJPY towards the 0% Fib. Retracement of 134.34. The outlook of USDJPY becomes bearish as the pair officially trades below the bullish channel. In order to reclaim its upside stance, USDJPY needs to at least climb above 136.26. On the contrary, the breakout of the immediate support of 134.34 would confirm another downside momentum toward 131.00.

Resistance: 134.75, 136.52, 137.06, 137.61

Support: 134.34

USDCAD

USDCAD makes a meaningful recovery after hitting the support level of 1.2795. The outlook of USDCAD remains bearish as the pair continues to trade below the descending trend line. In the meantime, the RSI stays in the negative territory, suggesting that buyers are on the sideline. Failure to defend the immediate level of 1.2795 would accelerate the downside. On the flip side, USDCAD needs to trade above the immediate hurdle of 1.2896 in order to claim its bullish stance.

Resistance: 1.2896, 1.2959, 1.3009

Support: 1.2795