The EUR/USD pair faced limited upward potential due to bearish market conditions and weak Eurozone retail sales. For the GBP/USD pair, a downward trend persisted, pressured by economic uncertainties in the UK. The Japanese yen, after a sharp rise, tumbled following dovish comments from the Bank of Japan, reflecting investor nervousness. Gold showed bullish momentum early in the session but faced selling pressure due to a strong dollar and rising stocks. However, increasing fund demand for gold hints at potential gains ahead.

EUR/USD:

Current Analysis:

• The EUR/USD pair is experiencing an upward trend on the hourly time frame, though the overall market sentiment appears bearish due to recent economic data and expectations of rate cuts by the ECB.
• The MACD and RSI indicators suggest a technical correction is likely, with potential support at 1.0884.
• Support Levels: 1.0884, 1.0841, 1.0816
• Resistance Levels: 1.0941, 1.1000

Forecast:

• Short-term (next few days): The euro might experience minor upward movements if US data is weaker than expected. However, the broader bearish trend suggests caution.
• Medium-term (next few weeks): Expect potential declines towards the support level of 1.0884 unless significant bullish momentum is established.
• Long-term (next few months): Given the anticipated ECB rate cuts, the euro might weaken further, especially if US economic data remains robust.

GBP/USD:

Current Analysis:

• The GBP/USD pair is in a bearish trend, exacerbated by economic challenges in the UK and restrictive monetary policies.
• Economic models suggest a further reduction in UK interest rates, which could pressure the British pound.
• Support Levels: 1.2662
• Resistance Levels: 1.2731, 1.2803, 1.2879, 1.2909, 1.2950

Forecast:

• Short-term: The pound may see some correction upwards, but selling pressure will likely dominate, particularly around the 1.2731 resistance level.
• Medium-term: Continued decline is expected, possibly testing the support level of 1.2662, with any rallies presenting opportunities for selling.
• Long-term: The pound might face sustained pressure due to economic uncertainties and potential policy easing by the Bank of England.

USD/JPY:

Current Analysis:

• The yen recently depreciated significantly due to comments from the BoJ indicating no immediate rate hikes amid market instability.
• USD/JPY has been volatile, influenced by both BoJ statements and US economic data.
• Support Levels: 146.29, 142.80, 140.22, 137.26
• Resistance Levels: 148.13, 150.88, 151.26, 153.80

Forecast:

• Short-term: The pair might experience bullish momentum, testing resistance around 148.13 and 150.88 if dovish BoJ rhetoric continues.
• Medium-term: Stability above the 148.13 resistance could signal further upward potential, but any hints of BoJ tightening could reverse gains.
• Long-term: The yen may weaken further if the BoJ maintains its dovish stance and US economic data supports a stronger dollar.

Gold (XAU/USD):

Current Analysis:

• Gold is showing bullish momentum, trading above the 200 EMA and breaking a downtrend channel.
• Increased demand for gold in ETF funds indicates bullish sentiment, despite recent declines due to a stronger dollar and rising stock markets.
• Support Levels: 2367, 2343
• Resistance Levels: 2414, 2445, 2459, 2471, 2500

Forecast:

• Short-term: Gold is likely to continue its bullish trend, potentially reaching 2414 and higher if it maintains above 2381.
• Medium-term: If gold consolidates above 2414, it could see further gains towards 2459 and potentially 2500.
• Long-term: Economic uncertainties and potential rate cuts by the Fed could provide a favorable environment for gold to appreciate further.