The US dollar may strengthen if US inflation data comes in lower than expected, potentially weakening other currencies like EUR, GBP, and AUD. Central bank policies, particularly from the Fed and Bank of England, will be a key driver for currencies in the near future. Gold’s direction remains unclear. Keep an eye on US economic data and Fed Chair Powell’s comments for clues on the direction of the US dollar and overall market sentiment.
Euro (EUR/USD):
- Technical outlook: Bullish with some signs of weakness
- Support: 1.0806, 1.0772, 1.0757
- Resistance: 1.0837, 1.0842, 1.0871
- EUR strengthened against USD on Friday but may see some correction today.
- Trading Recommendations: Look for intraday selling opportunities with a target of 1.0772. Consider buying on a confirmation signal around 1.0806.
- Key factors: Eurozone data, US inflation data, Fed Chair Powell’s testimony
British Pound (GBP/USD):
- Technical outlook: Bullish facing resistance
- Support: 1.2776, 1.2734, 1.2653
- Resistance: 1.2850, 1.2890
- A break above 1.2850 may require a catalyst like a significant drop in US inflation data.
- Trading Recommendations: Intraday selling possible if price breaks 1.2806. Otherwise, consider buying on a pullback to 1.2792.
- Key factors: US inflation data, Fed Chair Powell’s testimony, BoE rate cut expectations
Japanese Yen (USD/JPY):
- Technical outlook: Short-term bullishness fading, medium-term bullish
- Support: 160.26, 159.95, 159.00
- Resistance: 161.13, 161.81, 162.00
- USD/JPY may see some buying today after testing support levels.
- Trading Recommendations: Look for buying opportunities with a target of 160.80 or 161.13.
- Key factors: US consumer credit data, BoJ rate hike expectations
Australian Dollar (AUD/USD):
- Technical outlook: Neutral, drifting around 0.6637.
- Support: 0.6712 and 0.6671
- Resistance: 0.6791 and 0.6832
- Markets are expecting soft consumer and business confidence data from Australia on Tuesday.
- Trading Recommendations: AUD/USD expected to be quiet today with no major data releases.
- Key factors: Australian consumer and business confidence data, China’s CPI data, RBA monetary policy
Gold (XAU/USD):
- Trend: Bullish
- Support levels: 2370, 2343, 2339
- Resistance levels: 2395
- Trading Recommendations: Gold may see weak volatility but could reach the 2367 resistance level without major pullbacks. A break above $2369 could lead to further gains towards $2400.
- Key factors: US economic data, global risk sentiment. A dovish Fed or weak US data could boost gold prices.
Categories: ARFX News
