The Euro and British Pound are rising against the US Dollar due to expectations of a US rate cut and weak US data. The Euro is facing resistance at a key level and the Pound is near a 1-year high. The Japanese Yen is strengthening against the Dollar as the interest rate differential narrows. Gold prices hit a record high on expectations of a US rate cut and inflation hedge demand. Oil prices are rising after a larger-than-expected decline in US stockpiles.
Euro (EUR/USD):
- Forecast: Bullish with some potential for pullback.
- Support: 1.0900, 1.0840, 1.0800
- Resistance: 1.0950, 1.1000, 1.1093
- The ECB meeting is the major event for EUR this week. No rate change is expected, but the press conference could be market moving.
- A break above 1.0950 could signal sustained bullish momentum.
British Pound (GBP/USD):
- Forecast: Bullish with some choppiness.
- Support: 1.2987, 1.2944, 1.2776
- Resistance: 1.3008, 1.3051
- BoE rate cut expectations are receding, but weak US data could still support GBP.
- A break above 1.3008 could see further gains for GBP.
Japanese Yen (USD/JPY):
- Forecast: Bearish with some potential for correction.
- Support: 157.91, 157.33, 156.56, 155.57
- Resistance: 159.43, 160.20, 161.81
- The interest rate differential between the US and Japan continues to weigh on USD/JPY.
- A break below 157.33 could see a steeper decline for USD/JPY.
Gold (XAU/USD):
- Forecast: Bullish in the short-term, with a technical correction possible.
- Support: 2457, 2450, 2426, 2351
- Resistance: 2500, 2481
- Gold is near record highs on expectations of a Fed rate cut.
- A break below $2,481 could trigger a technical correction.
Oil:
- Forecast: Bullish in the short-term, with resistance nearby.
- Support: 83.50, 83.00, 81.58
- Resistance: 86.200, 87.900
- A surprise decline in US oil inventories is boosting prices.
- The price is trapped between the 100-day and 200-day moving averages, suggesting a potential rangebound market.
Categories: ARFX News
