EUR/USD closed up 0.18% on Thursday, 11th August 2022, at 1.0317. The risk of economic contraction continues and the euro is under pressure due to political instability in Italy. This winter, with inflation peaking, the eurozone will likely see a ...
1. Forex Market Insight
The euro has accumulated about 2% gains over the past three trading days on expectations that the European Central Bank may raise interest rates by a significant 50 basis points and a Reuters report that a key Russian gas pipeline will restart on time after repairs.
The European Union told member states on Wednesday, 20th July 2022, to reduce gas use by 15 percent between August this year and March next year, as an emergency measure.
This comes after Russian President Vladimir Putin warned that supplies of Russian gas to Europe via the largest pipeline could be further reduced and possibly even halted.
Italian Prime Minister Mario Draghi won a vote of confidence in the Senate on Wednesday, 20th July 2022, but the three main coalition parties refused to participate in the vote, effectively dealing a blow to his government, and the selling pressure on the euro was not eased.
(EUR/USD 1-hour chart)
We focus on the 1.0277-line today. If EUR runs steadily below the 1.0277-line, then pay attention to the support strength of the two positions of 1.0190 and 1.0116. If the strength of EUR breaks above the 1.0277-line, then pay attention to the suppression strength of the two positions of 1.0357 and 1.0529.
GBP Intraday Trend Analysis
The pound weakened against the dollar as data showed U.K. inflation climbed to its highest level in 40 years, but was only slightly above expectations.
(GBP/USD 1-hour chart)
GBP is mainly focused on the 1.2056-line today. If GBP runs below the 1.2056-line, it will pay attention to the suppression strength of the two positions of 1.1970 and 1.1916. If GBP runs above the 1.2056-line, then pay attention to the suppression strength of the two positions of 1.2106 and 1.2243.
2. Precious Metals Market Insight
Gold prices are stuck in a tight range, but trading volume is high.
Fed officials have downplayed the idea of a 100 basis point rate hike, but gold prices still haven’t managed to rally as demand for gold remains slightly weak.
(Gold 1-hour chart)
Gold pays attention to the 1701-line today. If the gold price runs steadily below the 1701-line, then it will pay attention to the support strength of the 1690 and 1680 positions. If the gold price breaks above the 1701-line, then pay attention to the suppression strength of the two positions of the 1712 and 1723.
3. Commodities Market Insight
WTI Crude Oil
Oil prices slipped Wednesday, 20th July 2022, after U.S. government data showed a drop in gasoline demand during the peak summer driving season.
In addition, concerns of a possible economic slowdown as central banks raise interest rates to fight inflation, leading to lower energy demand.
(Crude oil 1-hour chart)
Oil prices focus on the 99.50-line today. If the oil price runs above the 99.50-line, then focus on the suppression strength of the two positions of 102.52 and 105.01. If the oil price runs below the 99.50-line, then pay attention to the support strength of the two positions of 97.33 and 95.05.
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