Forex Technical Analysis

The Euro pair faces a challenge of further upside because of an overbought RSI, the market's consolidation following the ECB and Fed's moves.

A breakout of 103.04 (100-day SMA) will open the door to 104.69 (monthly high May 31) and 105.28 (200-day SMA) for the index. The next support level on the downside is 102.04 (monthly low June 16), followed by 100.78 (2023 low April 14), and then 100.00 (ground level).

This is the first time that the gold price has broken through a trendline pattern formed on a two-hour scale. It has broken out of a trendline pattern formed on a two-hour scale that supports bullish reversals.

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Lee Sue Ann, UOB Group's Economist, and Quek Ser Leang, UOB Group's Markets Strategist, believe USD/JPY must clear 142.25 before sustainably gaining.

In spite of the NZD/USD remaining pressured within a bearish chart formation, it defends the pullback from three-week highs made the previous day.

It is expected that the Consumer Price Index (CPI) for May month, which represents the cost of living in the UK, will be released at about 06:30 GMT on Wednesday morning.

It seems that the gold price has now found acceptance below a technical significance 100-day Simple Moving Average (SMA) after oscillating in a narrow band throughout the Asian session on Wednesday.

In contrast, if there is any meaningful recovery above the $1,942 zone (100-day SMA), the market might continue to attract fresh supply and remain capped between $1,962 and $1,964.

Despite the fact that the greenback, if measured by the USD Index (DXY) is being tracked, manages to keep the weekly recovery well in place on Wednesday in the 102.60 region.

At present, the index is trading at 102.60 and is gaining 0.07%. If 103.06 (100-day SMA) is breached, we could see 104.69 (monthly high May 31) and then 105.18 (200-day SMA) in the future.

There has been a sour mood in the market on Wednesday, which can be seen in the Shanghai Composite index and Hang Seng index both losing more than 1% on Wednesday.

A decline in gold prices has been ongoing since March, and the market is struggling to gain momentum. The price is hovering around $1,935 after finding support at $1,920.

Technical View — In the short term, the gold price XAUUSD is currently facing some challenges and consolidation. It is struggling to break a three-week descending support line around 1,920.

On the basis of the previous analysis, we would like to share an update on the gold price analysis that was shared earlier this week. The recent price action in the "yellow metal" aligns with our previous assessment, indicating a bearish outlook for the "yellow metal". The price tested the lower edge of a support zone on a weekly basis.

A sharp drop in WTI prices on Thursday was caused by an increase in open interest. The price drop could lead to further losses to the $67.00 low in June.

The USD's past decade of gains is likely to unwind at present valuation levels - as well as the USD's existing deep penetration in portfolios and trade.

It was a mild loss for the EUR/JPY pair to close with slight losses despite initial losses, rising from 155.06 to 156.60 and recovering from a low of 155.06. Furthermore, weaker-than-expected figures from the US, UK, and Eurozone seem to have been negatively affecting the Yen as the USD/JPY has surged to monthly highs.

On Friday, GBP/JPY continued to push the cross to fresh cycle highs at 182.80 after finding support at the 181.25 area. In that sense, the Sterling continued to gain ground on the back of Thursday’s Bank of England (BoE) hawkish surprise to raise rates by 50 basis points and held its ground despite weak British PMIs from June.

Following data showing business activity deceleration in the UK, GBP/USD dropped 0.30 percent, meandering at around 1.2700. The Pound Sterling (GBP) has been hit hard by that along with an aggressive 50 bps rate hike by the Bank of England (BoE) in response to stubborn inflation. At the time of writing, the pair is trading at 1.2709.

There appears to be a clear, more favorable outlook for the EUR/JPY pair compared to the Yen on both the daily and weekly charts.

During the week, the GBP/JPY traded in a range of 181.26 - 182.81, with the pair set to close with its sixth consecutive weekly gain.

In the EUR/USD market, the market has broken down on the back side of the June rally. The market is breaking down on the hourly time frame to the downside, which opens the possibility of a deeper correction in the days ahead.

It could be on the verge of breaking upward after being held below a key trendline resistance for a few years. Until something notable happens in the region, Kiwi the Bird is being dominated by global moves. Until then, all eyes will be on the Reserve Bank of Australia's decision on 4 July.

In order to determine the directional bias for USD/CAD trading, traders are awaiting the opening of the market next week.