EUR, GBP, JPY, NZD, and gold markets display unique dynamics amid global economic shifts. EUR/USD faces bearish pressure with possible corrective rallies, influenced by an empty Eurozone economic calendar. GBP/USD continues its downward trend, anticipating further pressure if UK job data disappoints, though resistance to the strong USD is observed. USD/JPY remains bullish, with the yen’s weakness likely as the Bank of Japan remains cautious on rates, while limited incentives in the U.S. may curtail gains. NZD/USD holds steady, though inflation control by the RBNZ suggests continued easing. Gold is under pressure from a strong USD and rate hike expectations, facing technical resistance.
EUR/USD Analysis and Forecast
Market Trend: EUR/USD remains bearish in the short term, with pressure continuing from recent USD strength and lack of significant Eurozone economic data.
Support Levels:
- 1.0667 (key short-term support)
- 1.0610 (stronger support zone)
- Alternative support: 1.0644 (intraday)
Resistance Levels:
- 1.0714 (immediate resistance)
- 1.0766 and 1.0795 (higher levels that could challenge upside movement)
Forecast: EUR/USD is expected to test support around 1.0667 in the short term, with potential rebounds if buyers react at this level. A breakout above 1.0722 could signal temporary strength, but significant upside momentum appears limited, especially with ECB member Robert Holzmann suggesting a possible interest rate cut, albeit uncertain.
Trading Strategy:
- Buy Signal: Above 1.0689, targeting 1.0722.
- Sell Signal: Below 1.0644, targeting 1.0611.
GBP/USD Analysis and Forecast
Market Trend: GBP/USD remains under pressure amid economic concerns, especially as the upcoming employment report is expected to show declines, reflecting a potential slowdown in the UK economy.
Support Levels:
- 1.2870 (tested level with potential buying interest)
- 1.2848 and 1.2733 (deeper support)
Resistance Levels:
- 1.2905 (key level where resistance could slow down any bullish attempts)
- 1.2982 and 1.3023 (upper levels if a reversal gains traction)
Forecast: GBP/USD’s short-term outlook is bearish, especially if employment data disappoints. Further declines are likely if the support at 1.2870 breaks; otherwise, limited upside toward 1.2905 could be seen, driven by corrective moves. The Bank of England’s recent rate cut has also raised doubts about further monetary easing due to inflationary concerns.
Trading Strategy:
- Buy Signal: Near 1.2870 targeting a return to 1.2905.
- Sell Signal: Below 1.2875 with a target of 1.2851 on downside continuation.
USD/JPY Analysis and Forecast
Market Trend: USD/JPY is currently in an uptrend, with USD strength and Japan’s accommodative monetary stance supporting higher levels.
Support Levels:
- 153.29 and 153.03 (near-term supports for potential buy interest)
- 152.65 (key medium-term support if pullback deepens)
Resistance Levels:
- 153.90 (nearby resistance with potential for breakouts)
- 154.31 and 155.20 (higher levels indicating potential targets on continued uptrend)
Forecast: USD/JPY is likely to test resistance around 153.90, and with strong USD fundamentals, a rise toward 154.33 could materialize if buyers sustain momentum. A breakdown below 153.57, however, could open the door for deeper corrections, especially if the yen benefits from any temporary risk-off sentiment.
Trading Strategy:
- Buy Signal: Above 153.90, targeting 154.33.
- Sell Signal: Below 153.57, targeting 153.15 on downside breakout.
NZD/USD Analysis and Forecast
Market Trend: NZD/USD exhibits a bearish outlook in the short term, with concerns around inflation stability and the RBNZ’s dovish stance on interest rates.
Support Levels:
- 0.5957 and 0.5942 (intraday supports)
- 0.5910 and 0.5860 (major support if downward trend continues)
Resistance Levels:
- 0.5987 and 0.6002 (immediate resistance levels in case of bounce)
- 0.6050 and 0.6100 (higher resistance for potential reversal)
Forecast: The NZD is expected to remain subdued amid limited upside momentum and potential volatility. Further rate cuts by the RBNZ could contribute to additional downside pressure. Short-term consolidation is likely around 0.5967, with a possible test of 0.5910 if bearish momentum persists.
Trading Strategy:
- Sell Signal: Near 0.6000, targeting 0.5942, if bearish indicators persist.
- Buy Signal: Post-support confirmation around 0.5910, if consolidation indicates potential reversal.
Gold (XAU/USD) Analysis and Forecast
Market Trend: Gold faces selling pressure as the USD strengthens and inflation concerns weigh on safe-haven demand. Technical breakdowns indicate further downside risks.
Support Levels:
- 2650 and 2639 (immediate supports under test)
- 2624 (critical support level to watch for deeper selloffs)
Resistance Levels:
- 2675 and 2700 (key resistance)
- 2711 (higher resistance if upside is attempted)
Forecast: Gold is vulnerable to further declines as USD strength and market anticipation of fewer rate cuts limit upside potential. The downside toward 2650 is likely, with additional support at 2639. Unless the USD reverses, Gold may struggle to breach resistance at 2700.
Trading Strategy:
- Sell Signal: Below 2650, targeting 2639 on downside continuation.
- Buy Signal: Above 2700, targeting a move toward 2711, if a bullish reversal emerges.
