Confidence in the UK economy is at rock bottom due to political chaos. The GBP/USD continues its turbulent time and heads back to the 1.12 level
Traders on a knife edge from potential intervention from the Bank of Japan to prop up the Japanese Yen as the currency breaks the 150.00 level
Recession fears way heavily on gold and oil and extend USD buying
Economic uncertainty due to Ukraine war and energy inflation continue to undermine the Euro zone. Risks to EUR/USD to the downside.
USD/JPY - BULLISH
We continue to be bullish on the 4-hour chart. Price continues its strong bullish momentum and has crossed the 150.00 level with price currently above the first support of 149.71. If the bullish momentum continues, we expect the price to head towards the second resistance at 150.71.
EUR/USD - BEARISH
Price is moving in a descending trendline and below the Ichimoku cloud. Therefore, we are still bearish. Overnight, price has retraced slightly, if this bearish momentum continues, we expect the price to pull back to 0.9746. If it breaks this level, we expect it to hit the second support at 97.05.
GBP/USD - BEARISH
On the 4-hour chart price has rejected the first resistance and is moving in a slightly descending trendline, therefore, we are slightly bearish. Price looks like it is heading to the first support level at 1.1162. Alternatively, price could test the first resistance at 1.1327.
USD/CHF - BULLISH
Price continues on a strong bullish trend on the 4-hour chart. It is still above the Ichimoku cloud, indicating a bullish trend. Its currently testing the first resistance at 1.0070. If bullish momentum continues, we expect price to get close to the second resistance around 1.0108. Alternatively, if it does not break through the first resistance price could drop back to the first support level at 0.9994.
On the 4-hour chart, price continues to move in a descending trendline. If it continues with bearish momentum, we expect it to hit the third support at 1614.26
AUD/USD - BEARISH
On the 4-hour chart the price is moving within the descending channel and below the Ichimoku cloud. We expect the price to test the first support at 0.6221. If the first support is broken, we expect the price to hit the second support at 0.6160.