The Euro continues to hold strength against the dollar, as cautious comments from FOMC members hint at a dovish Fed approach, while the pound also rises on the prospect of a less aggressive Bank of England. In contrast, the yen benefits from a weaker dollar but remains under pressure due to potential central bank policy divergence. The Australian dollar’s momentum slows, with the Reserve Bank of Australia signaling stable rates despite market expectations. Meanwhile, gold prices remain buoyant amid geopolitical tensions, and oil prices face downward pressure due to potential Middle East deals and increased Libyan output.
EUR/USD:
- Current Trend: Bullish
- Support Levels: 1.1060, 1.1017, 1.0950
- Resistance Levels: 1.1138, 1.1180
Analysis:
The EUR/USD pair remains in a bullish trend, supported by a weak Dollar Index. The price has consolidated above the 1.1045 resistance level, opening the path to 1.1138. If the dollar weakens further, particularly with dovish remarks from the Fed, the euro could push higher towards 1.1180. However, any unexpected hawkishness from FOMC members could cap gains.
Forecast:
Expect EUR/USD to test resistance at 1.1138. A break above could lead to a move toward 1.1180. Support at 1.1060 is key; a break below could trigger a downside move towards 1.1017.
GBP/USD:
- Current Trend: Bullish
- Support Levels: 1.2937, 1.2912, 1.2848
- Resistance Levels: 1.3012, 1.3050
Analysis:
GBP/USD is trading near a one-month high, driven by expectations that the Bank of England will maintain higher rates compared to the Fed. The pair’s bullish momentum is likely to continue if the dollar remains under pressure. However, caution is advised around the resistance level at 1.3012, where profit-taking could occur.
Forecast:
Look for GBP/USD to test the 1.3012 resistance. A breakout could target 1.3050. Conversely, a failure to break above 1.3012 might lead to a pullback towards 1.2937.
USD/JPY:
- Current Trend: Bearish
- Support Levels: 145.90, 145.40, 142.80
- Resistance Levels: 146.86, 148.29
Analysis:
USD/JPY is in a bearish trend, with the yen strengthening due to expectations of continued rate hikes by the Bank of Japan, contrasting with potential Fed rate cuts. The pair is approaching key support at 145.40, which could attract buying interest.
Forecast:
USD/JPY is likely to test support at 145.40. If this level holds, expect a bounce back towards 146.86. A break below could extend losses towards 142.80.
AUD/USD:
- Current Trend: Neutral/Bullish
- Support Levels: 0.6706, 0.6677
- Resistance Levels: 0.6761, 0.6790
Analysis:
The AUD/USD pair has stabilized after recent gains. The Reserve Bank of Australia’s hawkish stance is providing support, although the pair is facing resistance near 0.6761. Market sentiment is cautious due to mixed signals from China’s economy, a major trading partner for Australia.
Forecast:
Expect AUD/USD to trade within the 0.6706 to 0.6761 range. A breakout above 0.6761 could push the pair towards 0.6790, while a breakdown below 0.6706 might lead to a decline towards 0.6677.
Gold (XAU/USD):
- Current Trend: Bullish
- Support Levels: 2500, 2477, 2451
- Resistance Levels: 2510, 2539
Analysis:
Gold is trading near its all-time high, supported by a weaker dollar and geopolitical tensions. The price action suggests that gold could continue to rise if the dollar remains weak and geopolitical risks persist.
Forecast:
Gold is likely to test resistance at 2510. A break above this level could see a move towards 2539. On the downside, a break below 2500 could lead to a decline towards 2477.
Brent Crude Oil:
- Current Trend: Bearish/Neutral
- Support Levels: 75.83, 75.00
- Resistance Levels: 78.97, 80.00
Analysis:
Brent crude oil is approaching a key support level near $75.00 amid geopolitical developments and increased production in Libya. A potential deal in the Middle East and improved production could weigh on prices. However, any unexpected supply disruptions or bullish economic data could trigger a short-term bounce.
Forecast:
Oil may find support around $75.83, with potential for a bounce towards $78.97 if the support holds. However, a break below this level could lead to further declines towards $75.00.
