Forex Trading Tools and Services

Currencies NZD/USD

NZD/USD Forecast: Kiwi Poised to Extend Rally Toward 0.6100 on Weak US Data, Bullish Momentum

  • BY
  • June 5, 2025
  • 0 Comments

NZD/USD currency pair rallied to a seven-month high at around 0.6055, on the back of widespread strength in the New Zealand Dollar and weakness in the US Dollar despite persisting US-China trade tensions on weak US economic data. The Kiwi remained upbeat despite sustained US-China trade tensions, drawing strength from declining US Treasury yields and dovish Federal Reserve expectations. Technically, the pair is close to a bullish breakout through the consolidation range, with leaders such as the 20-day EMA and RSI hinting at upward momentum. A sustained break above 0.6050 might pave the way for a rally towards 0.6100 and further. KEY LOOKOUTS •  A break above this level might initiate bullish momentum towards 0.6100 and 0.6145. •  Any additional softness in US data can boost bets on a Fed rate cut, putting pressure on the US Dollar. •  Escalating tensions might affect risk sentiment and indirectly burden the NZD given New Zealand’s trade relationships with China. •  The bullish flag pattern, increasing 20-day EMA, and RSI above 60.00 all indicate further potential to go higher. NZD/USD pair maintains its rally, hitting a new seven-month high of around 0.6055 as the New Zealand Dollar trounces peers. The strength holds despite persistent US-China trade tensions, demonstrating the Kiwi’s resilience in a world filled with uncertainty. Subpar US economic data, such as weak ADP employment and ISM services data, has weighed on US Treasury yields and stoked hopes for a possible Fed rate reduction, further eroding the US Dollar. Technically, the couple is set to report a bullish break out of its latest consolidation range with momentum indicators such as the RSI and 20-day EMA favoring the move higher. A clean break above 0.6050 could set the stage towards the 0.6100–0.6145 resistance area. NZD/USD reaches a seven-month peak at around 0.6055 due to US Dollar weakness and healthy Kiwi demand. Bullish technical indications point towards a near-term breakout towards 0.6100. Weak US data and expectations of Fed rate cuts continue to pressure the Greenback. • NZD/USD reaches a seven-month peak at around 0.6055, propelled by general Kiwi strength. • Weak US economic indicators (ADP jobs, ISM Services) pressure US Treasury yields and the USD. • Speculation of Fed rate cut weighs on the US Dollar Index around 98.60. • US-China trade tensions continue, but the NZD stays resilient to potential threats. • Breakout expected technically, as NZD/USD nears the upper end of a bullish flag pattern. • RSI rises above 60, and the 20-day EMA steepens, indicating bullish momentum. • Next resistance levels are 0.6100 and 0.6145, while major support is at 0.5846. The NZD/USD pair has gained strong traction, reaching a seven-month high as the New Zealand Dollar outperforms amid a backdrop of global uncertainty. Despite ongoing tensions in US-China trade relations, the Kiwi has shown resilience, supported by investor confidence in New Zealand’s economic stability. Statements from the previous US President Donald Trump on how hard it is to get a trade deal done with China have raised geopolitical concerns without suppressing demand for the NZD. This level of strength is particularly surprising considering New Zealand’s close economic relationship with China, and it shows the market’s faith in the Kiwi currency. NZD/USD DAILY PRICE CHART CHART SOURCE: TradingView At the same time, the US Dollar is under pressure from soft local economic data. The most recent ADP Employment Change and ISM Services PMI for May missed expectations, which raised doubts regarding the health of the US labor market and service sector. These reports have resulted in lower US Treasury yields and heightened speculation regarding monetary policy easing by the Federal Reserve in future meetings. In turn, investors are turning away from the USD, and this provides additional support to NZD/USD appreciation in the larger market environment. TECHNICAL ANALYSIS NZD/USD is showing robust bullish momentum as it nears the upper limit of a Bullish Flag pattern, traditionally a continuation signal that foretells additional upside. The pair has moved out of its range of consolidation between 0.5846 and 0.6024, and this points to the possibility of an extended rally. The 20-day Exponential Moving Average (EMA) is pointing higher at 0.5925, supporting the upward trend. Furthermore, the 14-day Relative Strength Index (RSI) has moved past the 60.00 threshold, indicating building buying pressure. In the event that the pair remains above the level of 0.6050, it may reach the next significant resistance points of 0.6100 and 0.6145. FORECAST NZD/USD can see further upside if it continues above the 0.6050 level. A breakout above this level, supported by good technicals and weak US Dollar sentiment, could see the pair towards the next hurdle of 0.6100, then 0.6145. Ongoing weak US economic news, dovish Federal Reserve expectations, and calm risk appetite would also see the pair see the bullish path through. Conversely, if NZD/USD cannot maintain a level above the 0.6050 region and comes under renewed pressure from external risk factors—like rising US-China trade tensions or higher-than-expected US data release—the pair may retreat. A fall below the May 12 low of 0.5846 would leave it vulnerable to further downside towards the 0.5800 psychological level, with further support at the April 10 high of 0.5767.

Read More
AUD/USD Currencies

AUD/USD Moves Back Towards 0.6500 as Soft US Data Deters Dollar Strength

  • BY
  • June 4, 2025
  • 0 Comments

AUD/USD currency pair moved back higher on Wednesday, moving back towards the 0.6500 level as the US Dollar fell back after weaker-than-anticipated economic data. Even with the news that Australia’s GDP grew at only 0.2% in Q1 and saw its business activity barely move in May, the Australian Dollar picked up following the deterioration in the Greenback. US ADP employment data and ISM Services PMI both came in below expectations, indicating a deceleration in the US economy and stoking speculation of a Federal Reserve policy change. The pair’s rally shows the market’s responsiveness to US macroeconomic data, with more to come before Australia’s trade numbers and the next US Nonfarm Payrolls report. KEY LOOKOUTS • A vital determinant that may impact Fed rate expectations and trigger meaningful USD movement. •  Could offer short-term guidance on the AUD based on export result and trade surplus data. • A significant psychological and technical level; a clean breakout might indicate additional bullish pressure. •  Market sentiment for a dovish tilt may continue to press on the US Dollar if weak data continues. AUD/USD pair is displaying strength, rebounding against the critical 0.6500 level as the US Dollar falters with dismal economic reports. Disappointing employment figures from the ADP and an unexpected weakening in the ISM Services PMI have created doubts regarding the vigour of the US economy, fueling speculation regarding a possible policy change from the Federal Reserve. Even though Australia’s own weaker GDP growth and muted PMI readings failed to make a dent, the Australian Dollar recovered later from early losses on technical support around the 0.6450 level. Attention now turns to subsequent Australian trade data and the all-important US Nonfarm Payrolls release, which may provide the pair with fresh impetus. AUD/USD recovered to around 0.6500 as the US Dollar softened on weak jobs and services data. In spite of Australia’s poor GDP, the Aussie was supported by technical buying and USD weakness. Traders now look for Australia’s trade data and the US NFP report for direction. • AUD/USD recovered back to 0.6500, recovering losses from weak Australian GDP data. •  US Dollar lower following underwhelming ADP employment (37,000 vs. 115,000 anticipated) and ISM Services PMI (49.9 vs. 52 anticipated). • Australian Q1 GDP eased to 0.2% QoQ, the weakest expansion in three quarters, below forecasts of 0.4%. • S&P Global Composite and Services PMIs indicated limited growth, with readings hovering marginally above 50. • Technical floor at 0.6450 remained in place, triggering fresh AUD buying interest. • DXY (US Dollar Index) fell below 99.00, indicative of broad USD weakness in the face of weak US data. • The next major move in the pair is most likely to be influenced by upcoming Australian trade data and US Nonfarm Payrolls. The Australian currency strengthened against the US Dollar on Wednesday, primarily fueled by a weakening Greenback in the wake of softer-than-projected US economic data. The ADP Employment Change report showed a sharp deceleration of hiring, with private companies adding just 37,000 jobs in May — the weakest in more than a year. Further, the ISM Services PMI dipped into contraction ground for the first time this year, an indication of a larger moderation in the services sector. These points have provoked alarm regarding the health of the U.S. economy and heightened market speculation surrounding a possible change in the Federal Reserve’s monetary policy approach. AUD/USD DAILY PRICE CHART CHART SOURCE: TradingView At the same time, Australia’s domestic data showed a mixed reading. Although GDP growth eased to 0.2% for the first quarter, the lowest rate in three quarters, the economy maintained its record of unbroken expansion. The most recent PMI readings revealed marginal movement in business activity, and overall indicative of a generally slow but stable economic climate. As focus shifts now towards Australia’s next trade balance and the U.S. Nonfarm Payrolls release, market players continue to watch closely how changing economic indicators will influence central bank projections and currency action over the next few days. TECHNICAL ANALYSIS AUD/USD is pointing towards a rebound after it encountered solid support around the 0.6450 level, which has served as a floor in successive sessions. The pair is currently hinting at testing the 0.6500 psychological resistance, a level that has halted rallies on several occasions, meaning that a decisive breakout above it may pave the way for further gains. Momentum tools such as the RSI are slowly shifting into positive territory, reflecting renewed buying demand. But persistence above 0.6500 is the key to establishing a bullish breakout, while a failure to break this level might lead to further consolidation around the range thus far. FORECAST AUD/USD exchange rate manages to move above the 0.6500 resistance level, it might initiate further bullish momentum, particularly if future releases from Australia indicate a higher trade surplus or in case the US Nonfarm Payrolls report comes short. A breakthrough above this psychological level might unlock the way to the next resistance around 0.6550 or further, as sentiment towards the Australian Dollar improves. Further deterioration in US economic data could also generate speculation regarding further Fed interest rate cuts, further supporting the pair. To the downside, a failure to break the 0.6500 barrier could produce fresh selling pressure, with the pair likely to retest support around the 0.6450 area. A better-than-expected US jobs report or more hawkish Fed commentary might revive demand for the US Dollar, taking AUD/USD down. If bearish momentum gathers pace, the pair might drift towards 0.6400, particularly if Australian trade data disappoints or global risk sentiment deteriorates.

Read More
Currencies USD/JPY

Japanese Yen Gains Strength on BoJ Rate Hike Speculations and International Safe-Haven Demand

  • BY
  • May 22, 2025
  • 0 Comments

Japanese Yen (JPY) has gained significantly, touching a two-week high relative to the US Dollar (USD), as a result of a mix of bullish domestic and international drivers. Optimistic Japanese Machinery Orders data has raised hopes of Japan’s economic turnaround and speculation regarding additional rate hikes by the Bank of Japan. At the same time, fresh safe-haven demand amid rising geopolitical tensions and fear of the US fiscal prospects has contributed to the Yen’s popularity. Poorer-than-expected US economic reports, hopes of Federal Reserve rate cuts, and political uncertainty over President Trump’s tax bill have also pushed down the USD, further supporting the bearish leaning of the USD/JPY pair. KEY LOOKOUTS •  Monitor any new comments or policy changes from the Bank of Japan, particularly on interest rate rises, as ongoing monetary tightening may foster further JPY appreciation. • The main indicators like Weekly Jobless Claims, Existing Home Sales, and coming PMIs will be instrumental in assessing the well-being of the US economy and determining USD direction. • Persistent tensions in Gaza and Ukraine, as well as US-China trade tension, can drive safe-haven flows into JPY, supporting downside pressure on USD/JPY. • Strong technical support is at 143.20 and 142.35, with resistance around 145.00–145.40. RSI close to the oversold zone on shorter timeframes indicates potential for near-term consolidation or a small bounce before the next move. Markets should keep a close eye on major events influencing the USD/JPY pair, as various factors still determine its short-term course. The hawkish stance of the Bank of Japan, fueled by robust domestic indicators such as the recent Machinery Orders jump, is likely to create room for additional interest rate increases, which would strengthen the Yen. Geopolitical tensions and global economic instability are also expected to continue driving demand for the safe-haven JPY. In contrast, the US Dollar remains under pressure amid weak macroeconomic data, fiscal concerns linked to President Trump’s proposed tax bill, and growing speculation about Federal Reserve rate cuts. Technically, the pair faces strong resistance near 145.00–145.40, while a break below 143.20 could trigger deeper losses, making upcoming US data and global sentiment key factors to watch. The Japanese Yen is still underpinned by robust domestic data, BoJ rate hike prospects, and haven demand. On the other hand, USD/JPY is threatened by a soft US Dollar due to fiscal worries and Fed rate cut predictions. The next move will be led by key levels and future economic releases. •  The Japanese Yen touched a two-week high due to robust domestic fundamentals as well as haven inflows. • Japan’s Core Machinery Orders increased 13% in March, beating forecasts and reinforcing economic optimism. • Positive news reinforces speculation that the Bank of Japan will keep hiking interest rates. • The US Dollar continues to be pressured by fiscal worries and Federal Reserve rate-cutting expectations. • Ukraine and Gaza conflict and US-China trade tension fuel safe-haven flows into JPY. • Major resistance is at 145.00–145.40, with a break below 143.20 having potential to propel USD/JPY to further downside. • Investors should monitor US jobless claims, housing sales, and PMIs for new direction in USD/JPY. Japanese Yen continues to benefit from a mix of favorable domestic news and increased global uncertainty. Recent statistics indicating a steep rise in Japan’s Core Machinery Orders have brightened optimism about the nation’s economic revival, supporting belief that the Bank of Japan might continue with additional interest rate increases. This represents a major change from Japan’s history of ultra-loose monetary policy and indicates strengthening faith in homegrown demand and inflation stability. Moreover, hopes of increasing wages and consumer consumption are underpinning the wider picture for continued growth in Japan. USD/JPY DAILY PRICE CHART CHART SOURCE: TradingView Globally, the Yen is also enjoying its habitual safe-haven status with increased geopolitical tensions and fears about the US fiscal condition. The recent US tax bill, which would substantially increase the federal deficit, has created investor concern about the long-term economic soundness of the country. Concurrently, persistent tensions in the likes of Ukraine and the Middle East, and reviving trade tensions between the US and China, are contributing to market volatility. These events are forcing investors to turn to safe assets, and the Yen has been the favored pick in uncertain times. TECHNICAL ANALYSIS USD/JPY currency pair is demonstrating bearish momentum, with current price action having difficulty maintaining any serious recovery. The duo has been facing resistance in the 144.40 area, which is a significant retracement level as well as the 200-period SMA on the 4-hour chart and indicates sustained selling interest at higher prices. Oscillators on the daily chart are starting to turn bearish, indicating an increasing downside bias. Concurrently, the Relative Strength Index (RSI) on smaller timeframes is moving towards oversold levels, suggesting a possible short-term consolidation or corrective bounce. A clear violation of the 143.20 support level would set off selling pressure, exposing levels of 142.35 and further beyond to the 142.00 psychological level. FORECAST USD/JPY pair is able to stay above significant support points and sentiment surrounding the US economy turns positive, there’s scope for a short-term recovery. A welcome surprise in future US economic reports, for example, jobless claims or housing numbers, may provide short-term relief for the US Dollar. Then the pair may try to retest the 145.00 psychological level. A persistent break above here may set the stage for a rise up to the 145.35–145.40 resistance area, provided investor sentiment becomes bullish on riskier assets and the Federal Reserve dials back its dovish tone. Conversely, further US Dollar weakness on the back of fiscal worries, dovish Fed hopes, or weak macroeconomic data may keep piling pressure on USD/JPY. When the pair falls below the 143.20 mark, which is a key Fibonacci support, it could unleash heavy technical selling. This would project the fall further to 142.35 and even to the 142.00 area. Additional geopolitical tensions or robust Japanese numbers might support the safe-haven demand for the Yen, extending the move lower in the next sessions.

Read More
Currencies

USD/CHF Dips to Two-Week Low as Dollar Weakness and Safe-Haven Flows Drive Swiss Franc Higher

  • BY
  • May 21, 2025
  • 0 Comments

USD/CHF currency pair has continued its losing streak for the third day in a row, dropping to a two-week low at the 0.8220 level due to ongoing US Dollar weakness and an increase in safe-haven buying of the Swiss Franc. The greenback pressure to the downside is fueled by rising US fiscal worries following an unexpected sovereign credit rating downgrade, in addition to growing speculation that the Federal Reserve will lower interest rates further this year as inflation is easing and growth is slowing. Moreover, renewed US-China tensions over chip export controls have weighed on market sentiment, supporting demand for safe-haven assets such as the CHF. In the absence of significant US data releases, eyes now shift to speeches by FOMC members and geopolitical events to drive the near-term path of the pair. KEY LOOKOUTS • Market participants will carefully listen to statements from Federal Reserve officials for new indications of the timing and magnitude of prospective rate reductions. • Rising geopolitical tensions, particularly surrounding chip export ban tensions and retaliatory threats, may support safe-haven flows and benefit the Swiss Franc. • No significant data is scheduled for midweek, but future releases on growth, inflation, or employment might affect USD sentiment and determine the way the pair goes. • Any additional decline in global risk appetite or return of market volatility might make the CHF stronger and continue to apply pressure to USD/CHF. USD/CHF pair is still at risk of further declines on a mix of bearish sentiment around the US Dollar and persistent demand for safe-haven currencies such as the Swiss Franc. Market focus will be placed on near-term speeches from influential FOMC members, which may provide new insights into the Fed’s monetary policy direction, particularly in light of increasing interest rate cut expectations. In addition, increased US-China trade tensions related to chip export restrictions are likely to hurt investor sentiment, potentially triggering additional safe-haven flows into the CHF. With few economic data points on the calendar, broad risk appetite and geopolitics will be instrumental in dictating the near-term direction of the pair. USD/CHF pair continues to face pressure as continuous USD weakness and increasing safe-haven demand for the Swiss Franc act on the pair. Attention now turns to FOMC speeches and US-China trade tensions, which may further impact short-term market mood. •  USD/CHF falls to two-week low, trading near 0.8220 level in face of continuous selling pressure on US Dollar. •  US fiscal woes and a recent sovereign credit rating downgrade remain overhanging the greenback. •  Bets on a rate cut by the Fed become increasingly strong with evidence of slowing inflation and a weak US economic outlook. •  Safe-haven demand for the Swiss Franc is intensifying, further pinning back the USD/CHF pair. •  US-China trade tensions intensify over chip export controls, damaging world risk sentiment and underpinning CHF strength. •  Deficiency of significant US economic data turns attention in the market towards FOMC members’ speeches for policy direction. •  Technical and fundamental bias is still bearish, and there is potential for additional decline in the near future. The USD/CHF currency pair is presently subject to a mix of international and local drivers that are beneficial for the Swiss Franc. Continued unease about the fiscal condition of the U.S., particularly in the wake of recent sovereign credit rating downgrade for the country, has dented investor confidence in the U.S. Dollar. Further added to this is increased speculation that the Federal Reserve can consider interest rate reductions later this year with signs of inflation softening and economic growth slowing down. These trends have helped bring about a consistent weakening of the value of the Dollar, underpinning demand for traditionally safer assets such as the Swiss Franc. USD/CHF DAILY PRICE CHART CHART SOURCE: TradingView Besides local economic issues in the U.S., geopolitical tensions are also at large contributing to guiding market behavior. The renewed trade tension between the U.S. and China—initiated by export controls regarding cutting-edge chip technology—has generated new worries over global trade stability. The sharp response by China to U.S. actions has disturbed markets and spurred a flight to safety, which normally favors such currencies as the Swiss Franc. With little key economic data on the horizon in the near term, market players are keeping a close eye on central bank commentary and geopolitical developments to gauge the next set of moves in global currency markets. TECHNICAL ANALYSIS USD/CHF pair is trending downwards, indicating persistent bearish pressure. The pair is below crucial moving averages, which suggests a dominant short-term bearish bias. Momentum gauges like the Relative Strength Index (RSI) continue to be bearish, indicating ongoing selling pressure. Failure of the pair to maintain above the prevailing support zone may bring about the doorway for further losses. Yet any hoped-for reversal is expected to find resistance close to recent swing highs, where the sellers are likely to return to market. FORECAST USD/CHF pair may emerge if the market mood turns in favor of the US Dollar. This may happen if future speeches by Federal Reserve policymakers take a more hawkish tone, underestimating the probabilities of imminent rate cuts. Second, and perhaps more importantly, any resolution or relief in US-China trade tensions may dampen safe-haven demand, in turn weakening the Swiss Franc and favoring a bounce in the pair. Friendly surprises in major US economic indicators like higher-than-anticipated GDP or inflation figures may also give the USD a much-needed boost in the near future. On the negative side, the USD/CHF cross is still exposed to lower levels as the bearish forces continue. Renewed worries about the US fiscal situation coupled with growing market optimism regarding future Fed rate reductions are most likely to continue exerting downward pressure on the Dollar. Furthermore, if geopolitical tensions between the US and China heighten, Swiss Franc safe-haven flows can continue to strengthen. Under these conditions, the USD/CHF pair might continue its recent losses and challenge lower levels of support as safety demands from investors surpass risk appetite.

Read More
Currencies GBP/USD

GBP/USD Fails to Hold Key Resistance of 1.3303 on Mixed Technical Indicators

  • BY
  • May 6, 2025
  • 0 Comments

GBP/USD currency pair is trading near 1.3300 levels, with short-term momentum neutral as it moves close to the nine-day Exponential Moving Average (EMA). Nevertheless, the 14-day Relative Strength Index (RSI) is still greater than 50, a sign that the bullish tendency still lingers. A breakout above the near-term resistance at 1.3303 would set the stage for a push up to the psychological level of 1.3400 and higher. But a failure to hold above the present levels would bring attention on the downside, with the 50-day EMA level of 1.3054 being the critical level of support. A break below this level would precipitate further losses down to the April and March lows, indicating a potential change in medium-term sentiment. KEY LOOKOUTS • A clear breakout above the nine-day EMA would reinforce short-term positive momentum and set the stage for a challenge of 1.3400. • A fall below this mark might signal diminishing medium-term momentum and would leave the pair vulnerable to further declines. • This remains to indicate a bullish bias, but any fall below this level may see sentiment move to neutral or bearish. • The key resistance at 1.3445 (April high) and support at 1.2708 (April low) and 1.2577 (March low) are still important for assessing the broader directional trends. GBP/USD pair is at a decisive point, trading around the 1.3300 level with near-term resistance at the nine-day EMA of 1.3303. The breakdown above this level may boost short-term bullish strength, pushing the pair to the psychological 1.3400 level and April high of 1.3445. But if the pair fails to break higher, it could trigger fresh selling pressure, especially if it plummets below the 50-day EMA of 1.3054, a major medium-term support. Even with the 14-day RSI holding above 50, bearish sentiment remains in view for now, although traders need to keep a close eye on price movements near these technical levels for more definitive directional signals. GBP/USD remains around 1.3300, resisting at the nine-day EMA level of 1.3303. A breakout may reach 1.3400, and support at 1.3054 continues to be important in keeping the bullish momentum intact. The RSI value above 50 continues to indicate a bullish bias. • GBP/USD remains around 1.3300 in the Asian session, indicating consolidation after the recent rise. • The nine-day EMA level of 1.3303 is the initial important resistance level. • The 14-day RSI is still above 50, reflecting underlying bullish momentum. • A break above 1.3303 may see a test of 1.3400 and potentially the April high of 1.3445. • Initial support is at the 50-day EMA of 1.3054, a key level for medium-term momentum. • A break below 1.3054 may see the pair fall to the April low of 1.2708 and the March low of 1.2577. • The short-term trend is still neutral, waiting for a clear break above resistance or below support to determine direction. GBP/USD currency pair continues to remain stable around the 1.3300 level, showing cautious optimism among traders. Market players are still keen on observing wider economic trends and policy cues from both the US and the UK, which may determine the next leg of the currency pair’s trajectory. Faith in the British economy, along with prevailing expectations regarding interest rate moves, is crucial in sustaining the pair’s present tone. GBP/USD DAILY PRICE CHART CHART SOURCE: TradingView On the international front, investors are keeping a close eye on geopolitical events, inflation reports, and central bank rhetoric, all of which drive broad market sentiment. The GBP/USD is still responsive to changes in risk appetite and macroeconomic direction, with traders looking for clarity before taking firm directional positions. Stability in both economies and policy clarity in the near term will be critical in deciding the pair’s next direction. TECHNICAL ANALYSIS GBP/USD currency pair is steady as investors look towards overall economic and geopolitical trends that may shape market sentiment. Issues like forthcoming economic releases, policies by central banks, and worldwide risk appetite are dominating investor expectations. Investors are remaining wary and waiting for stronger indications from the UK as well as the US economies before taking stronger stances. Consequently, the currency pair remains trading in a relatively stable range, indicating a wait-and-see attitude in global financial markets. FORECAST If market sentiment continues to be positive and economic indicators in the UK remain resilient, the GBP/USD pair may pick up momentum and move above key resistance levels. A continued rise could move the pair toward the psychological barrier of 1.3400, with additional potential to touch the recent high around 1.3445. Favorable news like improved UK GDP growth, softening U.S. inflation, or dovish tones from the Federal Reserve are all potential drivers of further strength in the pair. Conversely, if the pair fails to hold support or if the bearish news arises—e.g., poor UK economic data, increasing U.S. yields, or escalated geopolitical tensions—GBP/USD may once again face pressure. A fall below key support levels would set the stage for a movement towards 1.3050 and progressively test lower ranges witnessed earlier in the months, e.g., 1.2708 or even 1.2577. Any move in the direction of a more hawkish U.S. monetary policy would also hit the pound hard, making further downside even more likely.

Read More
Currencies

USD/CAD Falls Below 1.4100 Pre-US CPI Data Due to Weak Dollar and Pressure in Oil Market

  • BY
  • April 10, 2025
  • 0 Comments

The USD/CAD currency pair remains trading lower, falling below the 1.4100 level as the US Dollar continues to be under pressure prior to the eagerly awaited US Consumer Price Index (CPI) data for March. Anticipation of a modest dip in both headline and core inflation has cooled USD demand, with markets rethinking the chances of an imminent Fed rate cut. The Canadian Dollar also has its own headwinds as weakening oil prices—brought about by rising US-China trade tensions and renewed concerns about demand—bear down on the commodity-sensitive currency. Despite weakness in the USD, these countervailing forces are expected to cap the pair’s downside. KEY LOOKOUTS •  A softer-than-anticipated inflation figure may spur rumors of future Fed rate reductions, which could be a further drag on the US Dollar. •  As a significant Canadian export, falling crude prices due to worldwide demand worries and US-China trade tensions might cap CAD advances. •  Reaction to last week’s FOMC Meeting Minutes will continue to be pivotal, particularly about balancing inflation taming and economic slowdown. •  Any intensification of trade tensions might trigger risk-off sentiment, impacting oil prices and general currency market flows. The USD/CAD pair is down pressure below the 1.4100 level as investors wait for the US CPI inflation reading, which has the potential to influence expectations of upcoming Federal Reserve policy action. A lower inflation print would likely raise speculation on rate cuts, weakening the US Dollar further. But the Canadian Dollar is also coming under headwinds with declining oil prices amidst renewed concerns about demand triggered by rising US-China trade tensions. These counterforces—USD weakness against CAD vulnerability on sliding crude—are poised to create a tug-of-war in the pair’s direction, sustaining volatility in the near term. USD/CAD trades below 1.4100 as investors await key US CPI data, with expectations of a slight cooldown in inflation. While the US Dollar remains subdued, falling oil prices amid US-China trade tensions weigh on the Canadian Dollar, limiting further downside. • USD/CAD trades below 1.4100 for the second consecutive day amid US Dollar weakness. • March US CPI data are due, with inflation projected to slow to 2.6% from 2.8% in February. • Core CPI is predicted at 3%, down slightly from the last 3.1% reading. • FOMC minutes reveal concern over increasing inflation and decelerating growth, implying dovish Fed policy. • Market pricing indicates a 40% probability of a Fed rate cut next meeting, representing uncertainty. • WTI crude oil is close to $60.20, weighed down by demand concerns driven by US-China trade tensions. • Canadian Dollar is still susceptible to declining oil prices, topping gains against weakening USD. The USD/CAD currency pair is in the limelight as the market waits for the release of the US Consumer Price Index (CPI) data for March. This report is viewed closely because it gives information about inflation patterns within the United States, which greatly influence Federal Reserve actions. Mild cooling of inflation relative to the last month will be expected and may shape investors’ sentiments of future monetary policy actions. Concurrently, the latest Federal Open Market Committee (FOMC) minutes indicate that policymakers are closely walking a tightrope between inflation fears and risks of a decelerating economic growth. USD/CAD DAILY PRICE CHART CHART SOURCE: TradingView In addition, external pressures like global trade tensions are fueling market uncertainty. Fresh tensions between the US and China have renewed concerns about global demand, especially in the energy markets. Since oil is a crucial component of the Canadian economy, these events are being closely watched. The movement of crude oil prices and their reaction to overall economic signals will remain a key consideration for the Canadian Dollar. With both the US and Canadian economies having unique issues, market players are watchful in anticipation of any major economic releases. TECHNICAL ANALYSIS USD/CAD continues to exhibit signs of weakness as it continues below the psychological level of 1.4100. The currency pair has dipped below short-term support levels, reflecting a bearish near-term bias. Momentum indicators like the Relative Strength Index (RSI) indicate poor upside potential since they are resting close to neutral levels, and moving averages are beginning to tilt downwards, enhancing selling pressure. Should the pair be unable to hold its ground at or above 1.4100, however, it would begin to weaken to the next level of support around 1.4050, while a solid break higher at 1.4100 could set up the retesting of 1.4150 resistance. FORECAST In the event the US CPI for tomorrow surprises higher on the back of more solid-than-expected inflation, then the US Dollar will be pushed upwards by reinforcing the Fed’s hold-back from further interest rate cutting. A resurgence of USD strength could assist USD/CAD in rising back above the 1.4100 level, with possible levels of resistance at 1.4150 and 1.4200. Also, any indications of stability or rebound in oil prices would assist the Canadian Dollar, but if oil demand prospects are brightened by softening global tensions, the pair’s higher limit could be curtailed. Conversely, a weaker inflation print might revive hopes of Fed rate cuts, pulling the US Dollar down and further lowering USD/CAD. A fall below the current support at 1.4050 might result in a more pronounced pullback towards 1.4000 or even 1.3960. If oil prices remain low based on ongoing demand issues or lingering US-China trade tensions, the Canadian Dollar might depreciate even more, halting the descent of USD/CAD even if there is stress on the US Dollar.

Read More
Crypto Ethereum

Ethereum’s Slippery Slope: DeFi Sector is in Grave Danger if ETH Dips to $1,000

  • BY
  • March 15, 2025
  • 0 Comments

Ethereum, the backbone of the decentralized finance (DeFi) sector, is in a delicate situation as its price is having difficulty holding above important levels of support. Currently sitting at levels of around $1,920, ETH’s inability to break the $2,200 barrier could see the asset plummet further down to $1,500 — and perhaps even $1,000, a level experts fear will destroy much of the DeFi space. Such lows might lead to gigantic liquidations, decreased liquidity, a sudden plummet in Total Value Locked (TVL), and dwindling investor confidence. As pressure from regulators gathers and DeFi comes under increasing scrutiny for enabling recent high-profile hacks, Ethereum’s price path has far-reaching implications for decentralized finance’s future. KEY LOOKOUTS • ETH will need to take back $2,200 or risk further selling; failure would see it accelerate toward the very important $1,500 support level. • Liquidity in DeFi space is threatened by the possibility of a deeper ETH correction that will lower TVL and suppress user interest on decentralized platforms. • $1,000 ETH stands as a fear point that can initiate en masse liquidations, investor exit, and drastic setbacks for innovation within the DeFi ecosystem. • Regulatory oversight is heating up, particularly following ETH-related hacks, that may result in sanctions, delistings of protocols, and lawsuits against DeFi developers. Ethereum’s recent price instability has triggered real fears throughout the DeFi world, with analysts cautioning against a looming crisis if ETH dips to $1,000. Such a sharp fall would trigger huge liquidations, a sudden drop in Total Value Locked (TVL), and a sharp decrease in investor activity and trust. With Ethereum struggling to climb back above the $2,200 resistance zone, the potential for further bearishness to $1,500 or worse is still intact. Adding fuel to the fire, DeFi is also in increasing regulatory jeopardy, particularly following its infrastructure reportedly being used to launder stolen crypto from a recent high-profile hack. The weeks ahead will tell if Ethereum will be able to regain its stride or pull the DeFi ecosystem into further chaos. Ethereum’s price woes continue to represent a serious risk to the DeFi ecosystem. A decline to $1,000 would induce huge liquidations and destroy investor sentiment. Increasing regulatory pressure also mounts the pressure, so ETH’s recovery above $2,200 is vital to market health. • Ethereum’s price currently floats around $1,920, with resistance at $2,200 and an important support point at $1,500. • A fall to $1,000 would hit the DeFi market hard, initiating huge liquidations and lower investor confidence. • DeFi Total Value Locked (TVL) has already dropped by 40%, reflecting decreasing liquidity and market engagement. • Experts predict that ETH’s fall would slow DeFi growth since low prices may deter new investment and innovation in the industry. • Regulatory pressure against DeFi is increasing, after its application in concealing the stolen ETH in the Bybit hack. • Social sentiment towards “buy-the-dip” and “bottom” is rising, reflecting some retail optimism at the $1,800–$1,900 level. • Technical gauges such as RSI and Stochastic Oscillator reflect bearish momentum, unless ETH decisively breaks out above the $2,200 level. Ethereum’s position as the foundation of the decentralized finance (DeFi) space puts it at the forefront of innovation and risk. As the main platform underpinning thousands of DeFi applications, any volatility in Ethereum’s ecosystem has a direct impact on the overall landscape. There are concerns among experts that if Ethereum suffers a sharp fall, it would create a ripple effect—lowering confidence in DeFi, slowing down user adoption, and diminishing liquidity across platforms. The confidence in DeFi relies not only on innovation but also on the resilience and stability of Ethereum as its foundation. ETHEREUM Daily Price Chart Chart Source: TradingView Compounding to the fear is the recent backlash DeFi has attracted due to its involvement in enabling illicit fund flows, like those associated with the Bybit hack. Critics suggest that while decentralization fosters freedom and autonomy, it also creates avenues for abuse without defined accountability. With regulators starting to look at the DeFi space more intensely, the industry can struggle to reconcile innovation with regulation. The future of decentralized finance thus depends not just on technological progress but on establishing trust, transparency, and responsible practices in the ecosystem. TECHNICAL ANALYSIS Ethereum is going through a consolidation period, failing to overcome major resistance levels. Indications point to slight upward pressure, with price action locked within a specified rectangular pattern. In spite of sporadic bullish efforts, the market mood is still guarded, and an inability to create a strong breakout might indicate additional downside threat. Support levels near $1,750 are proving to be resilient, but the absence of persistent buying pressure is likely to keep any meaningful relief in check. Traders are keenly observing for a firm move above resistance to validate a change in trend and rebuild bullish sentiment in the market. FORECAST The price outlook for Ethereum is unclear as it fails to hold its ground in the midst of market volatility. A possible breakout move upward can be catalyzed if ETH is able to cross above the $2,200 resistance point, indicating renewed investor appetite and higher buying pressure. If this is the case, Ethereum would be able to regain higher grounds, drawing new liquidity into the market and potentially advancing to $2,500 or higher. Higher adoption, favorable regulatory changes, and better sentiment in the overall crypto space could also add to a bull run. Alternatively, the bearish scenario is still a possibility, particularly if Ethereum cannot continue holding at its present levels. A breakdown below the $1,750 support level may trigger more selling pressure, with the next pivotal level being $1,500. Below this level, Ethereum could experience a prolonged slide towards $1,000, a level experts say will cause widespread liquidations and further deplete the DeFi sector. External influences like regulatory crackdowns, macroeconomic turmoil, or bearish sentiment in the crypto space may accelerate the downtrend, making a robust recovery difficult.

Read More
Commodities Gold

Gold’s Historic Leap Above $3,000: Market Responses, Geopolitical Uncertainty, and Prospects Ahead

  • BY
  • March 15, 2025
  • 0 Comments

Gold prices leapt above the historic $3,000 level to an all-time high of $3,004 per ounce before retreating to $2,982 due to US Dollar fluctuations and uncertainty regarding President Donald Trump’s trade agenda. The price rally was propelled by geopolitical uncertainties, such as the weakening Russia-Ukraine ceasefire and China’s ongoing gold buildup, which drove demand for the safe-haven metal. At the same time, fears of US recession intensified in the wake of soft consumer sentiment readings, fueling speculation about further easing of Federal Reserve policy in 2025. Despite the retreat, technical analysts foresee another attempt to drive prices higher to test resistance levels with support at $2,950 and resistance at $3,050 and $3,100 being key. KEY LOOKOUTS • Having briefly breached $3,000, gold bounces off $3,050 while support at $2,950 is still the key to knowing what will happen next. • Russia-Ukraine ceasefire uncertainty and China’s continuing gold purchases would potentially affect bullion demand and price movements. • Subdued consumer confidence and increasing recession worries boost hopes for Federal Reserve rate reductions, affecting the long-term outlook of gold. • Trump’s tariffs on steel and aluminum can stoke inflation fears, impacting the US Dollar and pushing gold prices up as a safe-haven. Gold’s recent rally above $3,000 underscores the increasing influence of geopolitical tensions, economic uncertainty, and changing monetary policies on the demand for the precious metal. The Russia-Ukraine ceasefire is still tenuous, while China’s ongoing gold hoarding underpins bullish sentiment. At the same time, US recession concerns have grown amid weak consumer sentiment numbers, increasing expectations of possible Federal Reserve rate reductions in 2025. Also, President Trump’s steel and aluminum tariffs have fueled inflationary fears, diminishing the US Dollar and further supporting gold as a safe-haven asset. While traders closely follow future economic data and Fed moves, gold’s capacity to hold onto its all-time highs will hinge on changing market dynamics. Gold’s historical rally above $3,000 is a response to increasing geopolitical risks, economic uncertainty, and inflation threats. Negative US consumer sentiment and expectations of Fed rate cuts drive bullish pressures, while Trump’s tariffs impose stress on the US Dollar, enhancing gold’s safe-haven appeal. • Gold momentarily peaked at a new all-time high of $3,004 per ounce before receding to $2,982 due to market volatility. • Failing Russia-Ukraine truce and persistent China gold buildup stimulate safe-haven demand for bullion. • Dovish consumer sentiment information heightens prospects of economic slow-down, sparking Federal Reserve interest rate reduction anticipations for 2025. • New import tariffs on aluminum and steel set off inflation concern, drenching the US Dollar while perpetuating bull-run in gold. • Soft Greenback spurs gold prices upward, though Treasuries market yield shifts as well as expected inflation provide variability. • Gold is resisted at $3,050 and $3,100, with very strong support at $2,950, followed by $2,900 and $2,850. • Investors look forward to next week’s Federal Reserve policy meeting for additional hints at interest rates and economic forecasts. Gold’s recent record of breaching $3,000 an ounce underscores growing global demand for safe-haven assets in light of increasing geopolitical and economic uncertainty. The ongoing Russia-Ukraine conflict, despite ceasefire efforts, remains a major factor influencing investor sentiment. Meanwhile, China’s central bank continues to expand its gold reserves, signaling strong institutional demand. The combination of these geopolitical risks and global market instability has further reinforced gold’s position as a preferred store of value. Furthermore, trade tensions, specifically US President Donald Trump’s tariffs on steel and aluminum, have stoked inflation fears, rendering gold a sought-after hedge against economic uncertainty. XAU/USD Daily Price Chart Chart Source: TradingView Apart from geopolitics and trade policies, the US economy is also at the center of influencing gold’s demand. A sudden drop in consumer confidence, fueled by fears of economic slowdown, has increased speculation that the Federal Reserve could relax monetary policy in 2025. The potential for lower interest rates and a weakening US Dollar enhances gold’s attractiveness as an alternative asset. Investors are eagerly awaiting future economic releases, such as retail sales and housing market reports, for additional clues regarding the health of the US economy. While uncertainty lingers, gold continues to be the focal point of investor attention, mirroring general anxiety regarding inflation, economic stability, and worldwide financial trends. TECHNICAL ANALYSIS Gold’s technical picture indicates a phase of consolidation following a brief move above the $3,000 mark. The metal encountered resistance around $3,004 before retreating, signaling profit-taking and a temporary respite in bullish pressure. The important support is around $2,950, which if broken, can send prices lower to $2,900 and $2,850. On the other side, a consistent rally above $3,000 can put the fence open for another test of $3,050 and maybe $3,100. Traders are in wait-and-see mode regarding the Federal Reserve’s monetary policy decision, with expectations of interest rates influencing gold’s next move. FORECAST Gold’s upswing is in place as geopolitics, rising inflation expectations, and possible Federal Reserve rate reductions underpin prices higher. Gold can trigger yet another push upward to the next resistance levels at $3,050 and $3,100 if it stays above $3,000. Ongoing central bank purchases, especially from China, and weakening US Dollar may underpin additional support for the rally. Moreover, any increase in geopolitical tensions or dovishness from the Fed can fuel safe-haven demand, supporting gold’s long-term uptrend. Gold has good fundamentals but is exposed to downside risks if profit-taking becomes more aggressive or the US Dollar rallies unexpectedly. A fall below the critical support level of $2,950 can trigger a deeper correction towards $2,900 and $2,850. If economic reports, including retail sales or housing data, beat expectations, they may decrease the chances of aggressive Fed rate cuts, capping gold’s gains. Additionally, if inflation continues to be contained and risk appetite grows, investors will turn their attention to other assets or equities and temporarily put pressure on gold prices.

Read More
Currencies GBP/USD

GBP/USD Tops Four-Month High as US Dollar Loses Ground to Cooling Inflation, Rising Economic Concerns

  • BY
  • March 13, 2025
  • 0 Comments

The GBP/USD rate hit a four-month high of 1.2989 on March 13 amid a sustained rise as the US Dollar comes under pressure following declining US inflation and increasing economic concerns. The recent decline in US inflation, combined with hopes of possible rate cuts by the Fed, has undermined the Greenback, lifting the British Pound. In the meantime, the UK economy is not without its problems, with falling housing prices and a muted outlook from the Bank of England. In spite of these issues, hopes for UK-US trade talks and hopes for persistently higher interest rates have supported the Pound. Investors are now looking to forthcoming US economic statistics and UK GDP data to further assess the prospects of both economies. KEY LOOKOUTS • Deterioration in US inflation is expected to raise hopes that the Federal Reserve will reduce interest rates earlier than expected, which will soften the US Dollar. • The GBP/USD pair continues to push higher, trading around 1.2960 as the US Dollar comes under pressure with rising fears of recession. •  The RICS Housing Price Balance dropped to 11% in February, signaling ongoing weakness in the UK housing market amid broader economic uncertainty. • Expectations of sustained high interest rates in the UK are supporting the Pound, as traders scale back earlier forecasts for aggressive easing by the BoE. The GBP/USD pair is holding steady near four-month highs, trading around 1.2960 as the US Dollar faces significant pressure. The recent dip in US inflation, with headline and core inflation slowing more than anticipated, has fueled speculation that the Federal Reserve will reduce interest rates in the near future, pressuring the Greenback. In contrast, the UK economy is struggling, led by a drop in house prices, but the British Pound is being cushioned by increased hopes that the Bank of England will keep higher interest rates in place for a longer time. With fears of a possible US recession and continued tariff uncertainty, the Pound is strengthening as investors await future economic data, such as the US Producer Price Index and UK GDP, for further market guidance. GBP/USD remains strong near four-month highs as the US Dollar weakens on cooling inflation, fueling expectations of Fed rate cuts. Meanwhile, the UK’s economic outlook faces pressure from a declining housing market, but optimism around sustained Bank of England rates supports the Pound. • The GBP/USD pair reached 1.2989 on March 13, maintaining strength amid a weaker US Dollar. • US February inflation data revealed a trend of cooling, with both headline and core inflation slowing more than anticipated, lowering the chances of additional rate hikes. • Expectations in markets are increasing that the Federal Reserve is likely to trim interest rates in the near future because of the downtrend in inflation and possible economic concerns. • The Greenback is also subjected to further headwinds as fears of a US recession persist, putting further pressure on the US Dollar. • The UK housing sector was weak, with the Residential Market Survey recording a second successive fall in the Housing Price Balance to 11% in February. • The UK 10-year gilt yield rose, indicating expectations that the Bank of England will keep higher interest rates for longer. • UK Prime Minister Keir Starmer was optimistic that the UK would not face US tariffs on steel and aluminum, which augured well for UK-US trade relations. The GBP/USD currency pair has been trending upwards, hitting a four-month high, indicating a positive sentiment for the British Pound. This change arrives as the US Dollar is increasingly under pressure, much of which stems from inflation and general economic concerns in the United States. As US inflation appeared to be easing, speculation grew that the Federal Reserve would soon decide to cut interest rates, which has further undermined the Greenback. In the meantime, the UK is working through its own economic woes, but the Pound is continuing to find favor, in part because it is expected that the Bank of England will maintain interest rates higher for longer. GBP/USD DAILY PRICE CHART CHART SOURCE: TradingView As the UK works through uncertainty in its housing market, where falling housing prices have been seen in recent months, there is cause for hope when it comes to trade with the US. UK Prime Minister Keir Starmer has shown faith that the nation would be spared tariffs on aluminum and steel via ongoing negotiations, which has allowed for a slightly more optimistic note in the market. As attention turns to pending economic data points, such as the UK GDP reports and more information regarding US inflation, prospects for both currencies remain tied to changing economic updates. TECHNICAL ANALYSIS GBP/USD has been in a strong bullish trend, closely following its four-month highs, with the pair repeatedly holding above the 1.2950 level. The recent escalation to 1.2989 indicates that the Pound is picking up pace, helped by the declining US Dollar. Important support is around 1.2900, while resistance is at 1.3000, where the pair is likely to encounter some consolidation before breaking higher. Indicators like the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) indicate bullish sentiment, although traders will watch closely for any pullbacks or overbought signals. As market players wait for new economic releases, these technical levels will be important in deciding the pair’s next direction. FORECAST The GBP/USD currency pair is expected to extend its bullish run, helped by a weakening US Dollar and expectation of the Federal Reserve to reduce interest rates in the immediate future. The Pound can continue to push towards the psychological 1.3000 resistance level if it holds its strength above crucial support levels, around 1.2950. The optimism in the market about the UK’s trade talks with the US and the Bank of England’s hardline on interest rates should give further support to the British currency. A move above 1.3000 would potentially lead to further advances, targeting the 1.3050 to 1.3100 region, if economic numbers out of the UK remain resilient. On the

Read More
Commodities Gold

Gold Glimmers As Dollar Loses Strength: XAU/USD Breaks Over $2,910 Amid Global Market Nervousness

  • BY
  • March 11, 2025
  • 0 Comments

Gold prices rose to an incredible high on Tuesday, pushing up over the vital $2,900 level to test levels at around $2,910 on the back of a weakening US Dollar. A new injection into the Euro in response to the news of an imminent German defense spending agreement unleashed a domino effect, sliding the US Dollar Index and enhancing demand for the safe-haven metal. Simultaneously, global market mood is still susceptible to the escalating tariff tensions between Canada and China. With investors looking to the next Federal Reserve meeting on March 19 and the CME FedWatch Tool indicating a high chance of unchanged rates, Gold remains supported, both technically and fundamentally, as it wipes out early-week losses and gains bullish traction. KEY LOOKOUTS • Gold is trading above $2,910; a break above R1 may drive prices towards $2,933, in line with last week’s highs. • A softer US Dollar, prompted by Euro strength, continues to underpin Gold’s rally, maintaining bullish momentum in the short term. • Markets expect no rate change on March 19, but increasing rate-cut expectations for May may further shape Gold’s price action. • Persistent global tariff tensions and recession concerns add to Gold’s safe-haven allure, keeping investors wary yet hopeful of further gains. Gold are still closely correlated with wider macroeconomic and geopolitical events. The recent breakout over $2,910 emphasizes its potential for higher prices, with sights set on the next level of resistance at $2,933, coinciding with last week’s highs. A declining US Dollar, driven by a strengthening Euro off the back of Germany’s defense spending news, continues to drive bullish momentum in Gold. Further, investors are following the Federal Reserve’s policy meeting on March 19, at which no rate adjustment is anticipated, but the chances of a rate reduction in May are increasing. On the other hand, global trade tensions and fears of recession are boosting Gold as a safe-haven asset. Gold’s increase over $2,910 indicates strong bullish sentiment, with support coming from a depreciating US Dollar and geopolitics. Traders now focus on the March 19 Federal Reserve meeting, while global trade tensions further augment Gold’s safe-haven demand. • Gold prices recover strongly, rising above the $2,910 level and wiping out early-week losses. • Weaker US Dollar propels Gold, fueled by Euro strength following Germany’s defense spending deal headlines. • Technical breakout opportunity arises as Gold approaches resistance at $2,933, last week’s high. • Safe-haven demand increases as global trade tensions escalate and concerns of a possible economic slowdown grow. • CME FedWatch Tool indicates a 95% probability of no rate hike on March 19, but a 47.8% probability of a cut in May. • Support zone remains firm at $2,880–$2,873, keeping Gold technically supported for the time being. • Thai Baht gains from Gold rally, reflecting Thailand’s status as a regional Gold-trading hub amid currency market shifts. Gold remains in the limelight as economic and political changes around the world shape market sentiment. One major driver of Gold’s popularity is the weakening US Dollar, which was under pressure after reports of a possible defense budget agreement in Germany. This move supported the Euro and, in turn, pushed demand for the precious metal higher indirectly. With increasing uncertainties, Gold remains a trusted safe-haven asset, providing investors with a buffer against volatility in conventional markets. XAU/USD Daily Price Chart Chart Source: TradingView Meanwhile, geopolitical tensions are also a dominant theme influencing market sentiment. The growing trade tensions between Canada and China, as well as the fear of wider tariff wars, is spurring caution in global markets. Investors are also monitoring the upcoming Federal Reserve meeting closely, as interest rate announcements can have implications for the overall economic direction. In such a setting, Gold remains steadfast as a safe haven of value, drawing in those looking for stability in the midst of the tempest. TECHNICAL ANALYSIS Gold has regained bullish momentum after taking back the crucial $2,900 level and moving towards $2,910. The metal has also crossed above the daily Pivot Point at $2,895, indicating strength in intraday trading. If purchasing interest remains, the following resistance level to be aware of is around $2,933, which matches last week’s highs. In contrast, support is seen to be strong at $2,880, which has remained in place in recent sessions. If it breaks here, it can potentially open doors towards further support around $2,873 and $2,857, presenting important zones to be watched out for by traders in the short term. FORECAST Gold may continue to rise in the following sessions. Its clear break above the $2,910 level may set the stage towards the next significant resistance near $2,933, which is also last week’s high. Breaking through this zone might reinforce buying confidence and drive Gold towards fresh short-term highs, provided the US Dollar continues to weaken and global tensions persist. Also, increasing hopes of a potential rate cut in the near future could further help Gold’s bullish outlook. Gold could see selling pressure. A fall below the support of $2,880 would lead to a move towards $2,873, and then a more significant correction towards about $2,857. These are crucial checkpoints for the traders, as a break below these levels could indicate a change in short-term momentum. Further, if the geopolitical tensions are alleviated or the Federal Reserve adopts a more hawkish approach in the next meeting, it might cap Gold’s upside and raise downside risks.

Read More