The Euro showed strength against the Dollar, continuing its upward trend, with labor and housing market data expected to impact its momentum. The Pound reached a six-month high after the Fed’s rate cut and a cautious BoE stance, with traders anticipating further rate adjustments. The Yen experienced gains amid expected BoJ policy moves and a weakening Dollar. Gold rebounded from its weekly low as economic concerns drove safe-haven demand, though its rise was tempered by U.S. Treasury yields, keeping its movement within a narrow range.
EUR/USD (Euro to US Dollar)
Current Trend: Bullish
The EUR/USD pair continues its upward movement, driven by a weaker U.S. dollar following dovish signals from the Federal Reserve. The market expects further rate cuts in the U.S., which could favor the euro in the medium term. The recent Fed decision to cut interest rates by 50 bps and expectations for additional cuts this year weaken the USD, providing strength to the euro.
- Support Levels: 1.1112, 1.1068, 1.1051
- Resistance Levels: 1.1168, 1.1196, 1.1238
Trading Strategy:
- Buy: On dips near the 1.1112 support level, with a target at 1.1168 and a stop loss below 1.1068.
- Sell: If the price breaks below 1.1068, target 1.1002 for a reversal.
Forecast: EUR/USD may continue its bullish trend in the short term, particularly if U.S. economic data remains weak. Look for resistance at 1.1196, with the next target around 1.1238.
GBP/USD (British Pound to US Dollar)
Current Trend: Bullish
The GBP/USD pair is on a bullish trend following a Fed rate cut and anticipation of the Bank of England holding its rate at 5%. The pound’s strength is supported by inflation concerns in the U.K., with expectations of further BoE cuts by year-end. The Fed’s dovish stance provides further support to the pound.
- Support Levels: 1.3188, 1.3153, 1.3115
- Resistance Levels: 1.3273, 1.3306, 1.3371
Trading Strategy:
- Buy: On pullbacks near 1.3188, targeting 1.3306, with a stop below 1.3153.
- Sell: If the price breaks below 1.3145, target 1.3115 for a bearish move.
Forecast: The pound may test the 1.3306 resistance again, especially if the BoE remains neutral or dovish. Short-term outlook remains positive, with a potential rise toward 1.3371.
USD/JPY (US Dollar to Japanese Yen)
Current Trend: Neutral to Bullish
The USD/JPY pair saw some fluctuations but remains supported by the Fed’s rate cuts. The yen is likely to gain further support from the Bank of Japan’s monetary policy in the medium term. Any dovish stance from the U.S. could weaken USD/JPY further.
- Support Levels: 142.19, 141.13, 140.43
- Resistance Levels: 142.79, 144.34, 147.17
Trading Strategy:
- Buy: On a pullback near 142.19, targeting 144.34, with a stop below 141.13.
- Sell: If the price breaks below 140.43, target 137.26.
Forecast: USD/JPY may see some upward pressure in the short term, especially if U.S. economic data comes in strong. However, medium-term fundamentals could favor the yen, leading to a reversal below 142.79.
XAU/USD (Gold)
Current Trend: Bullish
Gold is gaining momentum as a safe haven amid economic uncertainty in the U.S. and China. With the Fed’s dovish stance and growing geopolitical risks, gold is poised for further gains. The key psychological level of $2,600 has proven difficult to break, but continued USD weakness and global risk aversion could push gold higher.
- Support Levels: 2,561, 2,532, 2,511, 2,500
- Resistance Levels: 2,600, 2,612
Trading Strategy:
- Buy: Around 2,561 support, targeting 2,600 and a potential breakout towards 2,612.
- Sell: If the price breaks below 2,532, target 2,500 for a downside move.
Forecast: XAU/USD is expected to remain in a bullish channel. A break above $2,600 would open the door for a move towards $2,612 or higher. Conversely, a breakdown below $2,532 could signal further consolidation.
Conclusion:
XAU/USD (Gold): Strong upward momentum, watch for a breakout above $2,600.
EUR/USD: Likely to remain bullish, targeting 1.1238.
GBP/USD: Bullish with potential to test 1.3371.
USD/JPY: Short-term neutral to bullish but could face downward pressure medium-term.
