The euro remains under pressure as strong U.S. economic data and renewed tariff concerns favor the dollar. The British pound is also struggling amid global trade uncertainty, with investors cautious despite stable U.K. economic data. The Japanese yen is weakening due to BoJ policy expectations and dollar strength following U.S. tariffs. The Australian dollar has dropped to multi-year lows, hit by weak Chinese data and global trade fears. Meanwhile, gold is holding near key resistance levels as a safe-haven asset, benefiting from inflation concerns and market uncertainty tied to U.S. trade policies.
EUR/USD
Current Market Overview:
The euro remains under pressure as the U.S. dollar strengthens, driven by economic resilience and hawkish expectations from the Federal Reserve. The recent decline in EUR/USD was influenced by stronger-than-expected U.S. ISM Manufacturing Index data and continued restrictive Fed policies. Meanwhile, concerns over the Eurozone economy, particularly in manufacturing, have limited any significant recovery in the euro.
Support and Resistance Levels:
- Support: 1.0715, 1.0650
- Resistance: 1.0785, 1.0850
Forecast:
A break below 1.0715 could trigger further selling pressure, pushing the pair toward the 1.0650 support level. If the euro manages to sustain above 1.0785, a corrective move toward 1.0850 remains possible. However, macroeconomic fundamentals continue to favor a bearish outlook unless there is a shift in monetary policy expectations.
GBP/USD
Current Market Overview:
The British pound has faced renewed downside pressure due to trade tensions and persistent dollar strength. The announcement of new tariffs by the U.S. has weighed on risk-sensitive currencies, including GBP. Despite relatively stable UK PMI data, the economic outlook remains uncertain, particularly with expectations of a Bank of England rate cut in the coming months.
Support and Resistance Levels:
- Support: 1.2570, 1.2505
- Resistance: 1.2650, 1.2705
Forecast:
If GBP/USD fails to hold above 1.2570, further declines toward 1.2505 could be expected. Alternatively, a push above 1.2650 could indicate a recovery attempt toward 1.2705. However, with rate cut expectations and weak global growth prospects, rallies may remain short-lived.
USD/JPY
Current Market Overview:
The Japanese yen continues to weaken as the U.S. dollar remains well-supported by strong economic data. Although the Bank of Japan has hinted at potential policy adjustments, market participants remain cautious about aggressive shifts in monetary policy. The pair remains in an uptrend, benefiting from the divergence in monetary policy between the Federal Reserve and the Bank of Japan.
Support and Resistance Levels:
- Support: 146.80, 145.50
- Resistance: 149.30, 150.50
Forecast:
A break above 149.30 could confirm further upside momentum toward 150.50. However, any sign of intervention from Japanese authorities could lead to sharp pullbacks. Traders should monitor developments closely, as volatility is expected to remain elevated.
AUD/USD
Current Market Overview:
The Australian dollar has been under pressure due to trade war concerns and weak economic data from China. The latest decline in the Aussie was triggered by tariffs imposed by the U.S. and disappointing Chinese PMI figures, reinforcing concerns over global trade and demand for Australian exports.
Support and Resistance Levels:
- Support: 0.6450, 0.6385
- Resistance: 0.6525, 0.6600
Forecast:
A sustained break below 0.6450 may push AUD/USD toward the next major support at 0.6385. Upside movements remain limited unless risk sentiment improves and China’s economic data show signs of recovery. A move above 0.6525 could indicate short-term stabilization, but overall sentiment remains bearish.
Gold (XAU/USD)
Current Market Overview:
Gold remains elevated, benefiting from uncertainty surrounding global trade and concerns about inflation. The metal has found strong support near the $1,850 level as investors seek safe-haven assets amid geopolitical and economic instability. However, technical signals suggest potential consolidation in the near term.
Support and Resistance Levels:
- Support: $1,850, $1,825
- Resistance: $1,880, $1,900
Forecast:
If gold sustains above $1,880, further gains toward $1,900 are likely. However, a failure to break resistance at $1,900 could trigger a correction toward $1,850. The outlook remains bullish in the long term, driven by inflation concerns and ongoing geopolitical risks.
U.S. dollar remains dominant across major currency pairs, with further strength likely if economic data continues to support the Federal Reserve’s restrictive stance. Risk-sensitive assets like the Australian dollar and gold are affected by trade tensions and inflation concerns. Gold remains a key hedge against economic uncertainty, with potential for further gains if inflation concerns persist. Short-term fluctuations are expected, but the broader trend suggests continued strength in the dollar and cautious movement in other assets.
