Gold gains traction

Gold is trading higher today and gained strength after bouncing from the daily low at $1318. The demand for the precious metal is boosted as the US Dollar pulled back from the 4-month high against the major currencies. Yesterday the US CPI data came worse than expected and this added fuel for and this facilitated the retreat of grenback’s bears.
Technically speaking the short-term outlook remains bullish. On the four hour time frame the price is developing between the 100-day and 200-day SMAs, both maintaining slow downward slopes. During the last session the price pushed above the 20-day SMA that has turned already to north and is acting as a dynamic support and coincided with such provided by the 23.6% Fibonacci retracement of latest April to May bearish run at $ 1314. Stochastic has entered extreme overbought area and is showing strong upward momentum. RSI is also pushing higher but is slightly indecisive just below 70.
As seen on the chart XAU/USD marched above the 38.2% Fibo of same retracement at $ 1322 and currently is trading at $ 1325. Above this level new challenge is offered by 50 % Fibo at $ 1330. The downside remains supported by the daily low at $1318, below which is standing $ 1314 (20-day SMA and 23.6% Fibo). 

EUR/USD On wait and see mode ahead of US CPI

The greenback has paused its recent rally ahead of the core U.S. Consumer Price Index (CPI) data today. Signs of above target numbers may push FOMC to take more aggressive approach on monetary policy.
US inflation is the key event for today and EUR/USD has turned on wait and see mode. The pair is trading undisturbed around 1.1880. On the four hour time frame the price is developing below its bearish moving averages and currently is trying to break to above the 20-day SMA. RSI and stochastic had retreated from their oversold areas and both are showing good upward strength although are yest below their mid-lines.
EUR/USD might generate a rebound, according to indicators on the same chart, but only if advancing above 1.1900. Then this could be considered as a corrective recovery with next targets 1.1950 and the psychological 1.1200 mark. On the other hand the pair stands at risk for further declines with a break and close below the 1.1810 - 1.1790 area.