The Euro and Pound faced challenges as Eurozone manufacturing remained in contraction and the UK showed minimal growth. The Yen weakened as the USD rose due to optimism about the US economy, while Gold dipped under pressure from a stronger dollar. Eurozone manufacturing PMI remained stagnant, indicating ongoing economic struggles, while UK manufacturing displayed slight recovery. The USD/JPY pair advanced amid thin trading, despite Japanese economic improvements. Gold’s momentum faltered, struggling against dollar strength and market anticipation of limited rate cuts by major central banks.
EUR/USD (Euro/US Dollar):
Current Situation:
- The Euro is experiencing a modest recovery after a significant decline, currently trading around 1.1066.
- Eurozone manufacturing continues to be in contraction, particularly in Germany, which could exert downward pressure on the Euro.
Technical Analysis:
- Support Levels: 1.1050, 1.1017, 1.0950
- Resistance Levels: 1.1080, 1.1100, 1.1146
Forecast:
- The EUR/USD pair is likely to experience further volatility, with potential for more downside if the Eurozone’s economic data continues to disappoint. The key support at 1.1050 needs to hold to avoid further losses toward 1.1017. If the pair breaks above 1.1080, a short-term recovery toward 1.1146 could be possible, but sustained upside seems unlikely given the bearish trend.
Trading Strategy:
- Buy near 1.1050 with a target of 1.1080, considering a tight stop loss.
- Sell near 1.1080 with a target of 1.1050 if resistance holds.
GBP/USD (British Pound/US Dollar):
Current Situation:
- The British Pound is trading in a narrow range, reflecting low market activity due to the US holiday.
- The UK manufacturing sector shows slight expansion, providing some support to the Pound.
Technical Analysis:
- Support Levels: 1.3091, 1.3055, 1.2973
- Resistance Levels: 1.3145, 1.3181, 1.3201
Forecast:
- The GBP/USD pair might continue to trade within a narrow range, especially with the upcoming Bank of England decisions looming. If support at 1.3091 holds, the pair could see a recovery toward 1.3181. However, any break below 1.3055 could signal a deeper pullback toward 1.2973.
Trading Strategy:
- Buy near 1.3091 with a target of 1.3145, setting a stop loss below 1.3055.
- Sell near 1.3145 with a target of 1.3091 if resistance holds.
USD/JPY (US Dollar/Japanese Yen):
Current Situation:
- The USD/JPY pair has been on an upward trajectory, supported by US economic optimism.
- Despite expectations of rate hikes by the Bank of Japan, the Yen is weakening, possibly due to strong US economic data.
Technical Analysis:
- Support Levels: 146.37, 145.00, 143.85
- Resistance Levels: 148.00, 150.00, 151.26
Forecast:
- USD/JPY is likely to continue its upward momentum, especially if upcoming US economic data, particularly the jobs report, shows strength. The pair could test the 148.00 resistance level, with potential to move towards the psychological 150.00 level. However, a pullback to 146.37 could occur before any further gains.
Trading Strategy:
- Buy near 146.37 with a target of 148.00, considering a stop loss below 145.00.
- Sell near 148.00 with a target of 146.37 if resistance holds.
XAU/USD (Gold/US Dollar):
Current Situation:
- Gold is trading around the psychological level of $2,500, showing signs of a potential breakout or correction depending on market sentiment.
- The strengthening US Dollar and mixed economic data have added pressure on gold prices.
Technical Analysis:
- Support Levels: 2494, 2479, 2451
- Resistance Levels: 2509, 2532, 2573
Forecast:
- Gold could continue to consolidate within the $2,500 area, with potential upside if it breaks above $2,509. However, failure to hold above $2,500 could lead to a correction towards $2,479 or even $2,451. The broader trend remains bullish, but short-term fluctuations are likely due to market sentiment and Dollar movements.
Trading Strategy:
- Buy above $2,509 with a target of $2,527, setting a stop loss below $2,500.
- Sell below $2,494 with a target of $2,479 if support breaks.
