The market is having a quiet start to the week, with most USD-majors trading within consolidation. The fundamental docket picks up tomorrow. Let’s take a look at the technical set ups in EUR/USD, GBP/USD and gold (XAU/USD) before tomorrow’s US inflation data.
The EUR/USD is consolidating above the 2014-low, and setting up a range between 1.3490-1.3550. The inflation data tomorrow can help push the pair out of this range for some short-term direction. The break below is likely to be more significant as it should send the pair to test the 2014-low at 1.3476. GBP/USD has been consolidating throughout July after an exhaustion swing to a fresh 2014-high at 1.7190. We are seeing a price top forming, but the 1.70 support area will be key. Gold is consolidating in a triangle, but should breakout soon. There is some bearish bias and another bearish correction swing can open up the 1280.50, 61.8% retracement level.
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