The market is cautious ahead of key events this week, including the FOMC meeting and the RBA rate decision. The US dollar could strengthen on hawkish signals from the Fed, while the euro, pound, and Aussie could weaken. Gold prices may benefit from safe-haven demand due to geopolitical tensions.
Euro (EUR/USD):
- Euro steadies after market jitters subside, but faces headwinds from potential ECB rate cuts and hawkish Fed stance.
- Technical analysis suggests a possible upside in the near term, with resistance at 1.0742 and support at 1.0666.
- Key factors to watch: speeches by FOMC members John Williams and Patrick T. Harker, Empire Manufacturing Index data.
- Short-term trading opportunities based on support/resistance levels and MACD indicator.
- Possible upside if euro breaks above 1.0742, downside if falls below 1.0666.
British Pound (GBP/USD):
- GBP/USD faces downward pressure due to weak UK data and hawkish Fed expectations.
- Technical analysis indicates potential buying opportunities around 1.2688 and selling opportunities around 1.2657.
- Key factors to watch: speeches by FOMC members John Williams and Patrick T. Harker, Empire Manufacturing Index data.
- Short-term trading opportunities based on support/resistance levels and MACD indicator.
- Possible upside if pound breaks above 1.2720, downside if falls below 1.2606.
Japanese Yen (USD/JPY):
- USD/JPY rebounds after a correction, with potential for further upside.
- Technical analysis suggests buying opportunities around 157.72 and selling opportunities around 157.19.
- Key factors to watch: speeches by FOMC members John Williams and Patrick T. Harker, Empire Manufacturing Index data.
- Short-term trading opportunities based on support/resistance levels and MACD indicator.
- Possible upside if dollar breaks above 158.67, downside if falls below 156.27.
Australian Dollar (AUD/USD):
- Australian dollar subdued ahead of RBA decision, with rate hold widely expected.
- Technical analysis indicates a possible downside towards 0.6570.
- Key factors to watch: RBA rate decision, data from China.
- Short-term downtrend likely to continue if RBA maintains hawkish stance.
- Support levels at 0.6590 and 0.6564, resistance at 0.6617 and 0.6643.
Gold (XAU/USD):
- Gold prices experience some upside due to geopolitical uncertainty and safe-haven demand.
- Technical analysis suggests a possible breakout from a symmetry, with resistance at 2,332 and support at 2,308.
- Key factors to watch: central bank meetings (BoE, RBA, Norges Bank, PBoC).
- Support levels at 2,315, 2,300, and 2,276, resistance at 2,339 and 2,370.
- Broader downtrend on XAU/USD, but short-term upside possible.
Categories: Market News
