EURUSD and Gold
Today’s key Economic data release started early this morning with the Tokyo Consumer Price Index which was forecasted to come in at 1.1%. Additional Japan economic figures releases included current Unemployment rate forecasted as 2.4% and Japan Industrial Production and Retail Trade figures. In the afternoon the US preliminary Gross Domestic Product figures are scheduled for release which is forecasted to come in at 2.1% annualised from previously 2.2%. Additionally, US equity traders will closely pay attention to Michigan Consumer Sentiment data which is expected to show 97.0 from previous 96.9. These data releases could impact volatility in JPY & USD currency crosses and US Equities.
EURUSD
The EURUSD pair has broken below psychological important support level at 1.1200 confirming the current Bearish sentiment and prevailing downtrend. A breakout back above this level may target the 1.1300 and 1.1340 area, followed by potential resistance around the 1.1450 level and the lower high. A push above the 1.1500 area opens up the 2019 high at the 1.1570 area, with a firm move past this area shifting focus towards the 1.1800 zone as a potential target on a breakout higher.
Support for the pair at the current swing low comes into play around 1.1100. Below this the 1.1000 level may be used to support price but a loss of this important round number support may entice sellers to possibly target lower levels around 1.0920. Further support might accumulate around the 1.0850 and 1.0770 levels, which may attract interest as a horizontal support indicated by previous significant weekly swing highs from February and March 2017.
Gold
The Gold chart shows that the commodity has fallen back under support at 1290 after breaking under the “Neckline” at 1285.00. Price has found some support around 1270, but the danger is that a head and shoulders pattern has triggered, with a target around 1220.00. A loss of current swing low support at 1270 opens the way towards the 1264 level followed by 1250.00. This is in turn followed by 1241/1240. Below this the 1220.00 may be used to take profit but price might travel lower to test support around the 1200.00 round number.
Resistance at 1285.00 may be retested as it turned from support. The 1300.00 area might be used as resistance in the event of a squeeze higher. A break above this level may seek to engage with the 1310.00 lower high from last week. A move beyond this level may push price up to test 1325.00 followed by the recent high at 1346.75 ahead of the 1350.00 round number. Above this area the price enters a large zone of resistance extending up to around 1375.00.
Phillip Konchar
