Following recent economic data and central bank decisions, the euro rose against the dollar due to improved inflation in the Euro Area, while the pound saw mixed movement as the market anticipated changes in the Fed’s policy, suggesting potential rate cuts. The yen strengthened significantly after an unexpected rate hike by the Bank of Japan, indicating a shift towards tighter monetary policy. Meanwhile, gold prices increased amid geopolitical tensions, reflecting its role as a safe-haven asset.

EUR/USD:

Technical Perspective:

• Current Trend: Bullish structure on the daily timeframe.
• Support Levels: 1.0800 (100-day moving average), 1.0755, 1.0680.
• Resistance Levels: 1.0860, 1.0900, 1.0948.

Market Factors:

• The recent uptick in the Euro Area’s inflation print has supported the Euro.
• The FOMC meeting and U.S. labor market statistics are expected to influence volatility.
• The Eurozone economy showed mixed signals, with growth in some areas but a contraction in Germany.

Trading Strategies:

• Buy Signal Around 1.0842, targeting 1.0870, especially if the Fed’s stance is dovish. Also buy at two consecutive tests of 1.0822.
• Sell Signal: After 1.0822 level update, targeting 1.0795 if the Fed’s stance is hawkish. Also sell at two consecutive tests of 1.0842.

GBP/USD:

Technical Perspective:

• Current Trend: Consolidation with bearish overtones.
• Support Levels: 1.2800, 1.2750, 1.2680.
• Resistance Levels: 1.2950, 1.3000, 1.3040.

Market Factors:

• Anticipation of a shift in the Fed’s stance, with potential rate cuts expected in 2024.
• UK economic data, including inflation and labor market statistics, remain critical.
• Bank of England’s upcoming monetary policy report could significantly impact GBP/USD.

Trading Strategies:

• Buy Signal: Around 1.2845, targeting 1.2880, contingent on a dovish Fed stance. Also buy at two consecutive tests of 1.2828.
• Sell Signal: After 1.2828 level update, targeting 1.2802 if U.S. data is strong and the Fed is hawkish. Also sell at two consecutive tests of 1.2845.

USD/JPY:

Technical Perspective:

• Current Trend: Bearish after BoJ rate hike.
• Support Levels: 151.63, 150.80, 149.65.
• Resistance Levels: 154.49, 155.85, 157.18.

Market Factors:

• The BoJ raised its benchmark rate and announced a tapering of bond purchases, strengthening the yen.
• The upcoming FOMC meeting and statements from Jerome Powell could influence the USD/JPY pair.

Trading Strategies:

• Buy Signal: Around 151.00, targeting 151.94, based on positive U.S. data. Also buy at two consecutive tests of 150.17 with an oversold MACD indicator.
• Sell Signal: After 150.17 level update, targeting 149.16 if the pair fails to break above 151.00. Also sell at two consecutive tests of 151.00 with an overbought MACD indicator.

Gold (XAU/USD):

Technical Perspective:

• Current Trend: Bullish, approaching key resistance.
• Support Levels: 2400, 2391, 2370, 2351.
• Resistance Levels: 2432, 2451, 2471, 2500.

Market Factors:

• Gold has risen due to safe-haven demand amid geopolitical tensions.
• The FOMC meeting could generate significant volatility in gold prices.
• Economic indicators and Fed statements will play a crucial role in gold’s price movement.

Trading Strategies:

• Buy Signal: Above $2,410, targeting $2,437, contingent on a bullish Fed stance.
• Sell Signal: Around $2,437 if Fed rhetoric boosts the US dollar, targeting $2,400 and potentially lower.