Major currency pair EUR/USD ended the past week in negative territory for the third time in a row. Weak German PMI data and hawkish Fed comments have put pressure on euro prices. On top of that, the market also reacted to the news of a Chinese property developer's potential downfall, which could disrupt the global market. EUR/USD is trading just near its yearly low of 1.1663. Based on this week's RSI, the index is trading at 42, indicating an upward trend, while the momentum indicator is trading below 0, indicating oversold conditions. For the coming week, Germany's election results may influence the market, and technically, EUR/USD may find support near 1.1590 if it breaks the yearly low of 1.1663. In the event of any change in momentum, it may find resistance near 1.18, with 1.1860 being the next level to watch.
Last Friday, cable broke the 1.36 level, and it was the third consecutive weekly loss for the British pound. Technically, the pair is just trading above its yearly low of 1.3570, and any confirmed break below that level might indicate further bearish movement. On the higher side,1.3750-1.38 will be the key resistance zone for the pair, while 1.35 might provide some support before the major support of 1.3420.
XAU/USD – Gold
A strong US Dollar Index and hawkish Fed’s commentary dragged the prices of gold down last week. In fact, it was the lowest weekly close in the last six months. During the week, it went further down, and closed below its major support of 50% retracement levels of $1,755. RSI is making a lower low on a weekly basis, suggesting a short-term bearish outlook for gold. In addition to the trend reversal level previously, gold has major support near the 61.8% retracement level near $1,680. On the upside, it might try to recover up to the $1,780-$1,790 zone. Fundamentally, the market will wait for Fed chairman Powell’s speech on Wednesday, followed by major US manufacturing PMI data on Friday.
The information and content posted within this blog is for educational purposes only and it is not intended as financial or investment advice.
Options trading on commodities and forex on DTrader are not available for clients residing within the European Union or the United Kingdom.