USD/CAD Gaining positive traction

USD/CAD pushed below key 1.30 psychological mark yesterday after the upbeat Canadian economic data, especially the better than expected monthly GDP growth numbers. The pair managed to find some support at 1.1280 and today is trading higher with current market price 1.3018.
Technically speaking the short-term outlook remains neutral to bullish. On the four hour time frame the price is developing below its moving averages. RSI is showing slow bullish momentum and is close to its mid-line. Stochastic is displaying strong upward movement above its mid-line.
The pair will meet first resistance at 1.3040, which if broken, the upward recovery could be extended towards 1.3095-1.3100 area. The downside remains supported by the 1.30 handle and lower at 1.2985.
While the Loonie is influenced by the weaker oil prices , the US dollar is gaining positive traction and  is getting more attractive ahead of today’s FOMC monetary policy decision and a good set of US economic releases - ADP report on private sector employment, ISM manufacturing PMI and the official EIA crude oil inventories report, which will bring fresh impetus. 

XAU/USD Pressuring key support levels

For fourth consecutive session Gold is trading with negative tone, down with 0.21% for the day and currently trading around $ 1219. The growing expectations that Fed will keep its plan to continue raising interest rates by the end of the year is currently the main reason for the downward pressure on the precious metal.
On the four hour time frame the price is developing below its bearish moving averages. RSI is slightly below its mid-line and has lost directional strength. Stochastic is showing strong bearish momentum and is nearing the extreme negative territory.
XAU/USD is about to test the $ 1218 horizontal support which is broken will intensify the bearish sentiment and will result in retesting the next key one at $ 1211.

 

USD/JPY In limited range ahead of BoJ and Fed this week

USD/JPY is trading almost unchanged from Fliday’s closing level with current market price 111.07 ahead of the upcoming BoJ and Fed meetings, scheduled to decide on monetary policy this week.
Technically speaking the short term outlook remains neutral. On the four hour time frame the price is developing below the bearish 50-day SMA and the flat 100 –day SMA, while the 20-day SMA, also flat, is proving immediate support few pips below the current price.  RSI is located at its mid-line and has lost directional strength. Stochastic      is showing strong upward momentum around 65 level.
The downside offers strong support at 110.60 provided by last week’s low while the upside is challenged by 111.40.
The pair may continue with no significant progress until BoJ’s policy meeting tomorrow, followed by Fed’s meeting on Wednesday, which will bring fresh development and signals.

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EUR/USD Downside pressure is increasing after dovish ECB

The EUR/USD pair turned sharply to the downside, retracing from closer to weekly highs and weakened further below the 1.1700 mark after the latest ECB monetary policy update with  Draghi reaffirming to hold interest rates steady through the summer of 2019.
Technically speaking the short-term outlook remains bearish. On the four hour time frame the price is developing below its flat moving averages. RSI is located slightly below its mid-line and has lost directional strength. Stochastic is showing strong bearish momentum and is nearing negative territory.

Currently the pair is trading at 1.1656, but the huge selling pressure might drag the pair towards the 1.1600 handle, which if broken to below will open doors for testing next support lines at 1.1575 and 1.1535.  Looking to the upside, 1.1700 remains a resistance hard to achieve, but in case of any bullish attempts next target is provided by 1.1725 and 1.1745.

GBP/USD At weekly highs

GBP/USD is trading higher today, up with 0.24% on Trump-Juncker meeting with expectations for positive outcome on trade war talks. Currently the pair is trading at 1.3175 having marked a weekly high. Technically speaking the short-term outlook remains neutral to bullish. On the four hour time frame the price is developing above its bullish 20-day and 50-day SMAs and below the flat 100-day SMA which is acting as a first support just few pips higher. RSI is located at 62 and is aiming north, while stochastic has turned to the downside although remains above its mid-line. Strong bullish bias will be confirmed only if the pair conquers 1.3200 handle with next target 1.3230. The downside remains supported by 1.3155 and lower at 1.3100.

USD/JPY The upside is capped by 61.8% Fibo

Although USD/JPY remains confined to Monday’s range, the Japanese Yen is showing strength after the preliminary July Nikkei Manufacturing PMI figures which came under market's expectations. Alongside with this results, the country's leading index was revised to a 6-month high of 106.9 in May giving a reflection to the current economic activity that has fallen to 116.8 in May from 117.5 in the previous month. US Treasury yields are keeping Monday’s tops but there is no perspective for further rally which leads to slowdown in the upward development for the pair. Technically speaking the short-term outlook remains neutral. On the four hour time frame the price is developing below its bearish 20-day SMA and flat 50-day and 100-day SMAs. RSI is located around 36 and has lost directional strength. Stochastic has turned to north but remains below its mid-line. Currently the pair is consolidating around 61.8% Fibonacci retracement of its latest bullish run and according to technical indicators the chances for steeper advance are limited. The upside is still capped by 111.45 where the 100-day SMA is developing while the downside remains supported by the 110.80 – 110.70 zone.