The US dollar might strengthen due to the lack of US data today. Major currencies are experiencing rangebound trading or potential reversals. The Bank of Canada’s rate decision on Wednesday and the US PCE price index data on Friday could provide some direction for the markets later in the week. Gold price direction depends on upcoming US data and overall market sentiment.

GBP/USD:

• Trend: Downtrend
• Support: 1.2899, 1.2878, 1.2824
• Resistance: 1.2976, 1.3012, 1.3025
• Trading Strategy:
  • Long: Consider buying on confirmation around 1.2900. (Limited potential)
  • Short: Look for a shorting opportunity after a false breakout at 1.2943 with a target of 1.2870 or 1.2849 (depending on risk tolerance).
• Key Factors: Potential Bank of England rate cut, Retail sales data

USD/JPY:

• Trend: Medium-term bearish, short-term correction possible.
• Support: 156.61, 155.84, 154.60
• Resistance: 157.83, 158.33, 159.43
• Trading Strategy:
  • Long: Consider buying on confirmation around 1.5660. (Limited potential)
  • Short: Look for a shorting opportunity after a breakout and confirmation at 1.5833 with a target of 1.5661 or 1.5584 (depending on risk tolerance).
• Key Factors: BoJ meeting on July 31st, lack of US data

AUD/USD:

• Trend: Horizontal correction, potential reversal to upside soon.
• Support: 0.6647, 0.6609
• Resistance: 0.6718, 0.6756
• Trading Strategy:
  • Long: Wait for reversal signals in the support area before buying.
  • Short: No potential for shorting right now.
• Key Factors: China’s rate cut, Australian economic dependence on China

USD/CAD:

• Trend: Bearish wedge pattern, potential breakout upwards.
• Support: 1.3736, 1.3650, 1.3600
• Resistance: 1.3762, 1.3846, 1.3900
• Trading Strategy:
  • Long: Consider buying if there’s a daily close above 1.3762. (BoC rate cut might be priced in)
  • Short: Look for a shorting opportunity after confirmation near the resistance zone (1.3770/1.3820).
• Key Factors: BoC meeting on July 24th, Oil prices

XAU/USD (Gold):

• Trend: Neutral. The short-term trend is unclear.
• Support: 2395, 2370, 2351, 2339
• Resistance: 2440, 2452, 2471, 2500
• Trading Strategy:
  • Long Positions: The data on Friday will be crucial. Consider buying if the price breaks above resistance and shows buying momentum.
  • Short Positions: Be caution with selling. A convincing break below $2390 could indicate further weakness, while a break above a potential resistance level will depend on the outcome of the US PCE price index data on Friday.
• Key Factors: The market is likely to be volatile due to the upcoming Fed meeting and geopolitical tensions.