EUR struggles as weak German data signals potential ECB easing, while the pound rallies despite declining UK PMIs, buoyed by speculation of delayed BOE rate cuts. The yen remains under pressure, with the Bank of Japan hesitant to raise rates, causing USD/JPY to climb. In contrast, gold holds firm amid geopolitical tensions, China’s stimulus, and positive ETF inflows, eyeing further gains as dovish Fed expectations underpin its rise. These dynamics reflect mixed sentiments across currencies and commodities, driven by divergent central bank policies and global uncertainties.

1. EUR/USD – Bearish to Neutral Outlook

The EUR/USD pair has been under pressure following weaker-than-expected Eurozone data and ongoing concerns over economic growth. The pair tested support at 1.1086, rebounding slightly but still facing bearish sentiment. However, if U.S. data disappoints and dovish remarks from the FOMC continue, the euro could find some upward momentum.

• Support Levels: 1.1086, 1.1068, 1.1051
• Resistance Levels: 1.1141, 1.1155, 1.1180
• Forecast: A break below 1.1068 would likely lead to a further decline, targeting 1.1051 or even 1.1002. On the upside, weak U.S. economic data could push the pair back to 1.1141 and potentially higher to 1.1180.
• Trading Strategy: Look for short opportunities below 1.1086 with targets around 1.1050, while a sustained break above 1.1155 could present long opportunities.

2. GBP/USD – Bullish Outlook

GBP/USD has been outperforming, supported by the possibility of a Bank of England (BoE) rate cut and the Fed’s dovish stance. The pair is testing key resistance levels despite weaker UK PMI data, with continued bullish momentum likely if U.S. data remains weak.

• Support Levels: 1.3300, 1.3274, 1.3241
• Resistance Levels: 1.3390, 1.3429, 1.3455
• Forecast: Continued bullish momentum could see GBP/USD testing 1.3455, with strong resistance at this level. If U.S. data turns out weak, the pair may even test 1.3500. However, a break below 1.3274 would indicate bearish reversal signals.
• Trading Strategy: Look for buying opportunities near 1.3355 with targets at 1.3435, while a move below 1.3300 could provide shorting opportunities toward 1.3241.

3. USD/JPY – Neutral to Bearish Outlook

The USD/JPY has been trending upward as the Bank of Japan (BoJ) maintains its dovish stance, but recent dovish remarks from BoJ Governor Ueda hint at a more cautious outlook on raising interest rates. The pair is testing resistance at 144.42.

• Support Levels: 143.24, 142.83, 142.19
• Resistance Levels: 144.42, 146.30
• Forecast: USD/JPY is expected to range between 143.24 and 144.42 in the near term. A break above 144.42 may lead to further gains, with the next target at 146.30. On the downside, a move below 143.24 could indicate a bearish reversal, possibly retesting the 142.19 level.
• Trading Strategy: Consider shorting around 144.42 if confirmed by bearish signals, targeting 143.24. Long positions could be taken on a break above 144.42 with a target of 146.30.

4. Gold (XAU/USD) – Bullish Outlook

Gold prices are supported by a combination of geopolitical tensions, ETF inflows, and dovish U.S. monetary policy. The metal has recently tested an all-time high of $2,640 and is in overbought territory, but this has not significantly affected its upward trend.

• Support Levels: 2625, 2600, 2587
• Resistance Levels: 2650, 2675, 2700
• Forecast: Gold is expected to continue its upward trajectory with key resistance at $2650 and $2675. A break above $2650 could lead to a push toward $2700. On the downside, support at $2625 should hold in the short term.
• Trading Strategy: Look for buying opportunities on pullbacks near $2625 with targets at $2650 and $2675. A break below $2600 would signal potential short opportunities.

Summary:

Gold: Bullish, with potential to reach new highs.

EUR/USD: Bearish unless U.S. data disappoints.

GBP/USD: Bullish with potential for further gains.

USD/JPY: Neutral, watch for breakouts at key levels.