Market sentiment cautious ahead of Jerome Powell’s speech. Focus on clues about potential September rate cuts in the US. Several currencies show signs of potential trend reversals. Gold’s direction hinges on technical factors and Powell’s comments. Geopolitical tensions and inflation data remain key factors. Volatility may pick up depending on Powell’s comments.
Euro (EUR/USD):
- Overall Trend: Technical indicators suggest a possible downtrend, but recent price action has been choppy and indecisive.
- Euro shows little movement despite ECB ending its rate-cutting cycle.
- Market expects rate cuts later this year based on economic data.
- Support levels: 1.0806, 1.0753, 1.0727
- Resistance levels: 1.0837, 1.0862
- Trading Tips: Look for selling opportunities intraday with a target of 1.0789. A break below 1.0789 could open the way to further declines.
British Pound (GBP/USD):
- Overall Trend: Technical indicators show a bullish trend, but the pair has been volatile and prone to illogical movements.
- British Pound strengthens after Labour Party election win.
- Market awaits Powell’s speech for further direction.
- Support levels: 1.2789, 1.2761, 1.2741
- Resistance levels: 1.2815, 1.2845
- Trading Tips: The pound may continue to fall gradually. Look for a new round of the bearish correction with a target at 1.2748.
Japanese Yen (USD/JPY):
- Overall Trend: The medium-term trend is bullish.
- Yen initially strengthens on signs of strong wage growth in Japan.
- Upward trend likely to resume after hawkish Fed stance.
- Support levels: 160.72, 160.26, 159.00
- Resistance levels: 161.13, 161.81, 162.00
- Trading Tips: Look for buying opportunities from moving average levels or from the demand zone below 160.72.
Australian Dollar (AUD/USD):
- Overall Trend: The Australian dollar is drifting with a slight downward bias.
- Australian dollar shows little movement on mixed confidence data.
- Market awaits Powell’s speech for clues on September rate cut.
- Support levels: 0.6726, 0.6715
- Resistance levels: 0.6744, 0.6755
- Trading Tips: The main scenario is for AUD/USD to continue to fall towards 0.6690.
Gold (XAU/USD):
- Overall Trend: The trend is bullish, but the eagle indicator shows an overbought signal.
- Gold defends its uptrend channel but faces headwinds.
- Market sentiment may shift based on Powell’s speech.
- Support levels: 2360, 2351, 2339
- Resistance levels: 2370, 2395
- Trading Tips: A break below the uptrend channel and consolidation below 2,360 could signal a change in outlook and a potential decline towards 2,337.
Important Events:
- Federal Reserve Chair Jerome Powell delivers testimony before US Senate Banking Committee (All currencies)
- The US inflation report will be released on Thursday, which could cause volatility in the markets.
Categories: Market News
