The Eur/Usd opened with a 20 points downward gap today in the Asian session where it filled that gap within an hour and is currently trading at 1.3332 in the early hours of the Asian session. There are no fundamentals due for the euro today which may cause the pair to slack the whole day until the start of the U.S. session.
Investors might be waiting till Tuesday as the German ZEW Economic sentiment data would be released, which may cause good volatility in the market. If the pair moves above its pivot point 1.3350, then its next targets would be to test the levels of 1.3389 followed by 1.3409.
However on the downwards side, if it breaks its support level of 1.3311 then it could hit its critical support level of 1.3291 below which sellers may feel confident to enter the market.
Gbp/Usd is currently hovering over 1.5502 where a move above 1.5523 could take it to its resistance levels of 1.5565 and Friday’s high of 1.5573. The pair is strongly bullish and would be safe to go long as long as it trades above the 1.5420 area.
However, if it manages to break its Friday’s low of 1.5487 then it may go down further to test 1.5467 and 1.5445 as its bearish correction is also due.
A sharp bullish movement was witnessed in the gold market as soon as the trading began on Monday where it spiked up from 1312 till 1318, after breaking its Friday’s high of 1316.5. Gold is back in its range-bound area where it would continue playing like this if it does not sustain below 1282 and above 1245 area.
The fundamentals that are due this week may not be able to redefine a new direction for gold prices; however, any strong hint from a reliable source regarding the tapering of stimulus plan may invite heavy sellers or buyers in the market.
The tapering has to be done as many FED officials are in favor of doing so and according to them it may start in September. So according to my analysis, the bears are waiting to enter the U.S stock market very soon and the greenback would get stronger while majors would fall badly yet again.
As for the gold, we cannot blindly trust its move based on FED’s decision because investors may diversify their portfolio and go long on gold as they would be selling in Wall Street. Therefore, technical levels must be kept in mind before entering the gold market.
To contact the reporter of this story: Jonathan Millet at firstname.lastname@example.org