The EUR/USD has trimmed lower in the London session and the pair is trading at 1.1576, down 0.20% on the day. Speaking about fundamentals, the Eurozone industrial production faded 0.8%, dropping the estimate of -0.5%. What’s next?
Well, we got the PPI and Core PPI figures from the United States. Both are anticipated to grow to 0.2% and can support the dollar today. Let’s see how the actual outcome impacts the market.
The EUR/USD is trading in a sideways channel which is providing it a nice support at 1.1570 and resistance at 1.1605. The EUR/USD is likely to target 1.1645 upon the bullish breakout, while, the bearish breakout is likely to open further room for selling until 1.1530.
The GBP/USD pair fought for a firm course but remained stuck in between tepid gains/minor losses, within a broader trading range through the early European session. While the pair is relatively range bound as the investors seem to save their shots ahead of the Bank of England’s rate decisions. In today’s market, the intra-day lows hit by the pair could be seen as the impact of investors interests over global trade tensions which supported the safe-haven appeal for the greenback.
The GBP/USD has formed an ascending triangle pattern which is providing it a strong resistance near 1.3035 and support at 1.2980. The ascending triangle patterns usually violate on the bullish side and that’s exactly what we can expect from the Cable today. The bullish breakout can lead the pair towards 1.3075.
Gold – XAU/USD
Earlier today, the gold remained stuck in a narrow trading range as investors worry about a heated trade war between the United States and China. The trade dispute between Washington and Beijing has urged investors to buy the U.S. dollar in the hope that the United States has fewer to lose from the conflict. Overall, the Gold has been stabbed in a $20 price limit over the prior two weeks, with traders seeing for technical breakouts for evidence on further movements.
On the hourly chart, gold has crossed above the significant resistance level of 1198. The immediate resistance can be found at 1203 and 1206 levels. The leading indicators like RSI and CMF have crossed above 50, signifying the bullish sentiment of traders. For now, 1197 is likely to work as a support. The U.S. inflation will be in focus tomorrow for further clues on gold’s movement.