• CL-OIL


  • Cocoa-C


  • View more

Daily Technical Insights 2 September 2022



The EUR/USD pair tumbled on Thursday, continuing to suffer heavy daily losses and extend its slide towards the 0.9900 area after the release of upbeat US economic data. The pair is now trading at 0.9942, posting a 1.09% loss daily. EUR/USD stays in the negative territory amid a stronger US dollar across the board, as the dismal market mood and the expectations for a 75 bps rate hike in the September Federal Reserve monetary policy meeting continued to provide strong support to the greenback and undermined the EUR/USD pair. The US ISM Manufacturing PMI arrived at 52.8 in August, showing that the business activity in the manufacturing sector continued to expand at a healthy pace. For the Euro, the German Retail Sales jumped by 1.9% MoM in July, which came better than expected but failed to lift the shared currency higher.

For the technical aspect, the RSI indicator is 40 as of writing, suggesting that the bears are in control of the pair as the RSI dropped sharply toward 40. As for the Bollinger Bands, the price extended its slide and moved out of the lower band, therefore a strong downside trend continuation can be expected. In conclusion, we think the market will be bearish as the pair is heading to test the 0.9917 support. The technical indicators also turned south and are currently entering negative territory.

Resistance:  1.0007, 1.0054, 1.0171

Support: 0.9917


The GBP/USD pair declined on Wednesday, being surrounded by heavy bearish momentum and dropped to fresh 2-year lows below the 1.1500 level amid the broad-based dollar strength and the risk-averse market environment. At the time of writing, the cable stays in negative territory with a 0.69% loss for the day. The US ISM Manufacturing report in August that showed better-than-expected numbers indicated the US economy remained strong, which supports the idea of the Fed going for a 75 bps rate hike for the third straight meeting. For the British pound, the deteriorating outlook for the UK economy and political uncertainty have both kept the nation’s currency remained among the weakest currencies of the G10 today, despite the UK Manufacturing PMI for August getting revised higher to 47.3.

For the technical aspect, the RSI indicator is 35 as of writing, suggesting that the pair is facing heavy bearish pressure as the RSI has reached the oversold zone below 30. As for the Bollinger Bands, the price preserved its bearish strength and moved alongside the lower band, therefore the downside traction should persist. In conclusion, we think the market will be bearish as the pair is heading to test the 1.1476 support, which was last seen in March 2020. A steeper intraday decline could be expected on a break below that critical support.

Resistance: 1.1655, 1.1738, 1.1853

Support: 1.1476


Gold extended its daily losses and dropped to its lowest level since late July, below the $1,690 level. The 10-year US Treasury yield rose more than 2% on the day, weighing on the gold prices as upbeat US jobless claims and manufacturing PMI.

For the technical aspect, the RSI indicator is 28 as of writing, below the lower bound, suggesting that the price has reached the oversold zone and exists some correction risk. As for the Bollinger Bands, gold price edged lower along with the lower bound, maintaining slightly above the lower bound. With a downward moving average, persisting downside traction could be expected. The price now is close to the lower bound of its trading range since May 2020 at the $1,680 level, which is a pivotal level that gold investors must focus on. To the upside, if gold price finds support at the $1,680 level, we may see some upward surge as it has done several times since May 2020. To the downside, if the price breaks below, we should be prepared for the following fresh sell as many market participants have been betting on the rebound from the $1,680 level. In conclusion, we think the market is still under bearish pressure, and the next price action depends on US Nonfarm Payrolls on Friday. For more price action, eye at US Nonfarm Payrolls, which largely determine the following path of gold price while the gold price is at a key level.

Resistance: 1765, 1803

Support: 1685