The euro and pound face pressure as trade tensions and central bank decisions shape market sentiment. The euro struggles amid U.S. tariff concerns, while the pound remains uncertain due to BoE rate cuts and inflation risks. The yen weakens as the dollar strengthens on tariff news, though BoJ policies could limit its downside. Meanwhile, gold continues its bullish run, driven by safe-haven demand amid economic uncertainty and inflation fears. While technical indicators suggest potential corrections, the overall trend remains intact, with traders closely watching key levels for possible reversals or breakouts.
EUR/USD
The EUR/USD pair remains under pressure due to the strengthening U.S. dollar, driven by new trade tariffs imposed by the Trump administration. Investors are cautious as market sentiment fluctuates in response to potential trade conflicts and central bank policies. The European Central Bank’s (ECB) recent dovish stance, along with expectations of further monetary easing in March, has added to the euro’s weakness.
Key Support and Resistance Levels:
- Support Levels: 1.0272, 1.0239, 1.0178
- Resistance Levels: 1.0332, 1.0373, 1.0433
From a technical standpoint, EUR/USD has established a bearish trend, consolidating below the 1.0332 support level. If sellers maintain control, a further decline towards 1.0272 is likely. On the flip side, a decisive move above 1.0332 could push the pair higher toward 1.0373.
Forecast: If the price remains below 1.0332, downward momentum is expected to persist, targeting 1.0272. A breakout above 1.0433 would suggest renewed bullish interest, possibly extending gains towards 1.0500.
GBP/USD
The British pound has remained relatively stable around 1.243 as traders digest the Bank of England’s latest interest rate cut to 4.5% and the downward revision of growth projections. Uncertainty over U.S. trade policy and concerns about inflation dynamics in the UK contribute to cautious sentiment in the market.
Key Support and Resistance Levels:
- Support Levels: 1.2383, 1.2335, 1.2270
- Resistance Levels: 1.2468, 1.2505
Technically, GBP/USD is exhibiting a bullish bias, with key support at 1.2383 providing a strong foundation for further gains. A move above 1.2468 could accelerate bullish momentum, targeting 1.2505 and beyond. However, if the pair drops below 1.2335, the trend may shift downward, signaling potential losses towards 1.2270.
Forecast: If GBP/USD sustains its position above 1.2383, it may see a gradual rise toward 1.2468. A break below 1.2335 could lead to increased selling pressure, pushing the pair lower.
USD/JPY
The Japanese yen has weakened against the U.S. dollar, trading near 152, following the announcement of 25% tariffs on steel and aluminum imports. This has bolstered demand for the dollar while limiting the yen’s strength. The Bank of Japan remains on course for further rate hikes, but the yen’s upside potential is capped by external market factors.
Key Support and Resistance Levels:
- Support Levels: 151.12, 148.42
- Resistance Levels: 152.77, 154.39, 155.52
The medium-term trend for USD/JPY remains bearish, although intraday movements favor bullish momentum. Buyers have shown strong interest around the 151.12 level, making it a crucial support zone. If resistance at 152.77 is broken, further upside toward 154.39 is possible.
Forecast: As long as the pair stays above 151.12, bullish momentum could push it towards 152.77 and beyond. A break below 151.12 would signal potential downside movement towards 148.42.
Gold (XAU/USD)
Gold has surged past $2,870 per ounce, reaching all-time highs amid rising demand for safe-haven assets. The implementation of new U.S. tariffs and growing concerns over inflation have supported gold’s bullish momentum. Additionally, expectations of rate cuts by the Federal Reserve later in the year continue to bolster demand for the precious metal.
Key Support and Resistance Levels:
- Support Levels: 2,834, 2,807
- Resistance Levels: 2,900
Gold remains in a strong uptrend, with the next psychological resistance level set at 2,900. A pullback could provide buying opportunities near 2,855 or 2,834. If gold breaks below 2,834, a further decline towards 2,800 may occur.
Forecast: With strong demand and economic uncertainty, gold is expected to continue its upward trajectory, targeting 2,900 and possibly 2,950 in the coming sessions. A break below 2,834 would indicate a potential trend reversal, leading to a decline toward 2,800.
Conclusion
Gold: Strong bullish trend, key support at 2,834, resistance at 2,900.
EUR/USD: Bearish below 1.0332, bullish above 1.0433.
GBP/USD: Bullish above 1.2383, bearish below 1.2335.
USD/JPY: Bullish above 151.12, bearish below 151.12.
