The EUR/USD pair continues to fall in a bearish channel. Any pullback for the pair is short-lived and followed by a strong bearish candle. Moreover, a negative outlook is also implied, as the pair broke through the 1.16 level for the first time in a year. Since it has fallen from a 1.19 to a 1.16 level without any major pullback, it might retrace higher before it resumes further decline. As far as price is concerned, on the higher side, 1.1680-1.17 will act as a strong resistance zone, while on the downside, 1.15 is a major support zone, followed by 1.1290. On a weekly basis, RSI is trading at 38, indicating the possibility of further downward movement. As a whole, the market will react to the US Nonfarm employment data, which will be released on Friday, 08 October 2021.
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By breaking the 1.35 level, the GBP/USD pair made a new yearly low. A strong US dollar and rising concerns of Brexit continue to put pressure on the prices of GBP/USD. According to RSI, the index is trading at 42 and is continuing to decline. Last week, it breached and closed below the 78.6% retracement level, 1.3650. A major support level is situated close to the 61.8% retracement level, which is around 1.3170, while 1.3650 will decide the future trend for the GBP/USD pair.
XAU/USD — Gold
The prices of gold closed below their 50% retracement level of $1,764 for the third week in a row. Gold prices are falling due to higher Treasury yields and a strong US dollar. However, on a weekly basis, gold managed to close slightly positive near $1,759 after reaching a low near $1,721. There is a possibility of gold prices bouncing back for a short period due to the lack of an established trend. If it crosses next to the watch, it will be around $1,798 as it has a resistance zone at $1,764-1,770. On the downside, the next major support level is near the 38.2% retracement level of around $1,689. The US employment data scheduled to release on Friday, 08 October 2021, may shed some light on how gold prices will trend in the future.
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