Today’s focus is on US CPI data. The direction of the major currencies (EUR, GBP, AUD, CAD) will likely depend on whether inflation comes in lower than expected. Gold could also benefit from lower inflation. Remember, these are just forecasts, and the market can be unpredictable. It’s important to manage your risk and have a trading plan in place. NFP report will also be released this Friday.

British Pound (GBP/USD):

• Trend: Bullish with potential for further upside or downside depending on US CPI data.
• Support: 1.2800, 1.2761
• Resistance: 1.2885, 1.2940
• Key Indicator: US Consumer Price Index (CPI) data release.
• Forecast: Similar to EUR/USD, GBP/USD could see further gains if US inflation falls. A breakout above 1.2885 could lead to a test of 1.2940. However, higher-than-expected inflation could cause a decline below 1.2800.

Japanese Yen (USD/JPY):

• Trend: Bullish with potential for correction depending on US CPI data.
• Support: 161.02, 160.72
• Resistance: 161.81, 162.16
• Key Indicator: US Consumer Price Index (CPI) data release.
• Forecast: A strong rise in US inflation could push USD/JPY even higher, potentially breaking above 162. However, weaker-than-expected inflation might trigger a correction towards 160.72 or even 160.02.

Australian Dollar (AUD/JPY):

• Trend: Bullish with potential for correction depending on US CPI data.
• Support: 0.6671, 0.6627
• Resistance: 0.6780, 0.6874 (possible)
• Key Indicator: US Consumer Price Index (CPI) data release.
• Forecast: Favorable US inflation data could solidify the AUD/USD’s rise and possibly lead to a test of 0.6874. However, a negative surprise could trigger a decline towards 0.6690 or even 0.6627.

Canadian Dollar (CAD/JPY):

• Trend: Range-bound with potential breakout after US CPI data.
• Support: 1.3596, 1.3500
• Resistance: 1.3640, 1.3736
• Key Indicator: US Consumer Price Index (CPI) data release.
• Forecast: The direction of USD/CAD will likely depend on the US CPI data. A significant drop in inflation could lead to a decline below 1.3500, while higher inflation might trigger a breakout above 1.3736.

Gold (XAU/USD):

• Trend: Bullish with potential for volatility.
• Support: 2351, 2339
• Resistance: 2395
• Key Indicator: US Consumer Price Index (CPI) data release.
• Forecast: A sharp jump in US inflation could cause gold prices to surge above 2395. However, weaker inflation could lead to a pullback towards 2351 or lower.