EUR/USD Higher

The EUR/USD pair is trading higher in today's session just a few hours before the opening of the US trading session. The pair reached a low of 1.1530 yesterday and since then it's climber up to 1.1653.

The pair is still in bearish trend as it would take strong EU fundamentals in order to break the predominantly bearish sentiment over the pair.

First bull target is seen at 1.1712 which would mark a double top on the short term. Second bull target is seen at 1.1900 and major target is the breakout of the bearish trend at 1.2250.

No major news are scheduled to today so we could see mostly technical trading.

Chart: EUR/USD H4

Silver At Support

Silver has reached the shore at 16.15, the long term support of a trend that started in the end of 2015. As the precious metal is testing the support now, market participants are eagerly waiting to see whether it will break it or bounce off of it.

It's worth noting that the precious metal has already gone below the most important SMAs - 50, 100 and 200. And now it's being held by immediate support. If Silver breaks the 16.00 level we would have a confirmed breakout and a potential continuation of the downfall in price.

There are no major US news coming out this week so market participants would more likely be focused on technicals rather than fundamentals.

Chart: XAG/USD D1

USD/CAD Close To Resistance

USD/CAD has been trading to the upside for the first half of this year as we saw a massive move north starting in the end of January. The pair was trading at 1.2250 at its lowest for the year right before it started its way up.

Currently, USD/CAD is trading at 1.3300 as market participants are still optimistic about the strengthening of the US economy.

Bear in mind that although the strong US fundamentals paint a rather pretty looking picture, the market is moved not by past events and scenarios but by the hopes and fears of the market players. In this light, it pays to be cautious in times when others are greedy.

Chart: USD/CAD H4

GBP/USD Consolidates

GBP/USD reacted sharply to the upside last week when the news broke out that the BoE is keeping the rates unchanged at 0.50%. The pair reached a low of 1.3103 on Thursday last week and in the same day moved some 120 pips higher.

The highest high was seen the next day when the Sterling went to 1.3316 and since then the pair has been depreciating.

Currently, GBP/USD is trading at 1.3211 as speech of BoE Gov Carney is minutes away. It could be expected that the pair could swing both ends as we are still unsure whether the BoE would present a dovish or a hawkish outlook on the UK economy.

Chart: GBP/USD H4

Gold Sell Off

Gold has been trading sharply to the downside since it's peak of $1,365 in mid April. The precious metal reached a new low in the early trading hours today when price dipped below the support level at $1,255 going to a low of $1,253.

The main trend remains bearish for the time being as we would need a strong buy signal, most likely ignited by weak macro picture. As the European market and the US market are witnessing redemptions, we could expect some of the money to be allocated in the Gold market.

Main target for the bear camp is $1,235, whereas bulls are eyeing the levels above $1,280 in order for the trend to be considered bullish.

Chart: XAU/USD H4

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GBP/USD Halts at Support

The GBP/USD pair registered a sharp drop last week as price went from 1.3430 to 1.3200. The pair has been depreciating since it reached the double top toward the end of April this year. The bearish trend looked like it was exhausted but market participants thought otherwise as the pair continued its way south last week.

GBP/USD will need a strong push to the upside in order to recover the losses incurred in the last two months.

If it dips below 1.32 again we could see it drop below the 0.618 Fib level which stands at 1.2983. Until then support is 1.32 and resistance is seen at 1.3491.

Chart: GBP/USD D1

Gold Goes Down

Gold was trading to the upside last week when the precious metal made a 1-month high going above the 200SMA to a high of $1,309. The gains, however, were short lived and ended right after the US dollar decided it's time to continue its rally.

Currently, most market experts are bullish on the US economy despite raising rates. Financial magnates like Julian Robertson and Paul Tudor Jones are expecting the rally in the stock market to continue at least until the end of the year. Paul Tudor Jones even called for a "crazy" stock market toward the end of 2018 along with rising bond yields.

Given how colorful and optimistic the second half of the year looks, traders and investors seem to be drifting away from any safe havens, namely Gold and Silver.

One thing is certain, as volatility is back in the markets we are to see a wild half of the remaining year.

Chart: XAU/USD D1

USD/CHF Moves North

The USD/CHF pair erased most of the losses it accumulated in the previous weeks due to a very dovish statement by Mario Draghi, the ECB chairman. The Swiss franc was right after the Euro on the depreciation line as both suffered massive sell offs.

Market participants weren't optimistic about the statement by Mario Draghi and flew to the US dollar for safety among the political uncertainties in Europe.

The USD/CHF pair closed very close to parity on Friday and we are now yet to see whether the uptrend will continue and break parity or traders and investors will put selling pressure on the dollar and bring it back below the 50SMA.

Chart: USD/CHF D1

Euro Weakens

The EUR/USD pair weakened with more than 300 pips on Thursday and Friday last week as Mario Draghi entered the market with dovish comments. In his press conference he addressed the question about raising rates and according to the ECB, the earliest we could see European rates raise will be the summer of 2019.

This statement was registered by the markets as a reason for a sell of in the single European currency and the Euro went from 1.1850 to 1.1543 against the dollar.

The sell off was also felt in the Swiss franc as it lost close to 200 pips going from 0.9820 to 0.9980, very close to parity.

The market sentiment on the Euro remains bearish and if we can break the level of 1.1550 we could see another leg down to 1.1300.

Chart: EUR/USD D1

USD/CAD Reached Resistance

Strong resistance is standing in the way of the US dollar against the Canadian dollar. The pair reacted bearishly to Friday's trading as market participants pushed the pair to the resistance level at 1.3030. The long term downward trend that started in the beginning of January is still intact.

The pair needs to break 1.3100 in order to invalidate the bearish sentiment. If bears, however, put more pressure to the downside we can see the exchange rate go to the SMAs which are now hovering around 1.2800 - 1.2600.

Fundamentals will most likely play an important role in the pair's future as we are yet to see the unfolding of the trade tariffs impact on the market.

Chart: USD/CAD D1

GBP/JPY Climbs Higher

The GBP/JPY pair climbed to levels close to the major SMAs in the first days of last week as the pair approached 148.00. Nearing the end of the week the pair gave away some of the gains made in the beginning but still was able to sustain the price above 146.50.

The pair reached a strong support on the long term scale at 143.50 and bulls reacted strongly to the opportunity. If the bullish trend on the short term continues, we can expect to reach the first SMA - the 50SMA and then the other two almost simultaneously as they are all very close to each other.

First bull target will be to take the 50SMA and possibly break the double top at 150.00.

Chart: GBP/JPY D1

USD/JPY Reached 200SMA

The USD/JPY pair traded right below the 200SMA on Thursday and Friday last week as bears took control over the pair and pushed price down to levels below 109.50. The pair is now in between the major SMAs - 200, 100 and 50.

We can expect the bearish trend to continue as we as seeing a slowdown in the US economy and looming trade concerns.

Bears can attempt to push the price down to levels below the 100SMA which falls at 108.07. If that happens, their major target would be to get to the lower trend line of the long term downward trade channel at 102.40.

Chart: USD/JPY D1

USD/CHF Takes a Break

USD/CHF has been depreciating since it reached a double top last month at 1.0050. The pair had to take a few days of consolidation before breaking to the downside and confirming the double top.

The pair closed the week hovering around the 50SMA at 0.9860. A rapid pullback was registered on Friday afternoon European time and the pair jumped from 0.9790 to 0.9890. After that buying pressure eased a bit and the pair traded with normal volumes again.

If the downtrend continues we can expect the pair to reach the 200SMA which falls at 0.9714 and see if bulls try to take over at that buying opportunity.

Chart: USD/CHF D1

CAD/CHF Stops at 100SMA

The CAD/CHF pair closed the week gracitating towards the 0.7600 level. The pair has had some massive intra day swings making it almost impossible to day trade because of the unpredictable and rapid movements.

However, on the short term the pair still looks bearish as price has retreated from its high of 0.7870 and reached a low of 0.7535.

If the bearish trend continues, we can expect the pair to reach main target at the long term support zone of 0.7300. That level would act as a strong support if reached and we can expect a pullback once there.

Chart: CAD/CHF D1

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USD/CAD Close to Resistance

USD/CAD closed the week behind us just a few pips shy of 1.30. The pair reached a high of 1.30 during the NFP release and due to the strong number that we got it, the US dollar surged. The rally was short lived as just minutes after the initial jump, most of the reaction has subsided.

The pair is now close to the long term resistance as it approached the upper trend line of the long term downtrend trading channel that started in the beginning of 2016 when the pair was trading close to 1.46.

The price is now gravitating towards the 1.30 level and if bulls are able to break the resistance at 1.3050 we could see a renewed interest in the long side of the exchange rate's trading.

Chart: USD/CAD D1

Silver Consolidates

Silver has consolidated around the level of 16.50 and has intermingled with all the important SMAs. On the one hand, it has been trading sideways for the better part of the year so far starting since February and still no sign of any breakout.

On the other hand, the long term bearish trend has seemingly come to a halt as the precious metal reached a low of 13.63 in 2015, went as high as 21.00 in mid 2016 and is now trading somewhere in between.

The price falls below the 50-, 100- and 200SMA and in order to break it, Silver needs to have a serious boost, which could most likely come from lower than expected US growth rate, increasing unemployment, which seems unlikely and what could be the most viable option - a rate in the interest rate which could depreciate the US dollar and make investors flee to the precious metal market.

Chart: XAG/USD D1

GBP/JPY Moves Higher

GBP/JPY is moving higher since last week when the pair hit a bottom at 143.03 and closed the weekly candle above 146.00. The Sterling depreciated against its peers due to a dovish tone out of BoE and lower than expected economic announcements last month.

However, the Sterling seems to be regaining what it lost as it's moving higher against all major counterparties. 

The GBP/JPY bottom reached last week acted as a strong support that has the potential to bring the pair to its lost highs starting with the first bull target at 149.30 which also happens to be the 200SMA. If that level is reached we can expect a light pullback to cover some profit taking.

Chart: GBP/JPY D1

Gold Slightly Higher

Gold is trading higher in the early opening hours of today's trading session. The precious metal reacted bearishly to the higher than expected NFP and Jobs data on Friday. The news release announced 218K jobs created and unemployment at 3.8%. Immediately there was a sell off in the precious metal but less than an hour later Gold was recovering what it lost.

The price on Friday went to $1,288 and touched upon the support line on the long term upward trading channel.

If it continues to go in that direction, Gold could soon reach the 200SMA and breaking through it can give Gold bugs a price above the psychological $1,300.

Chart: XAU/USD D1

USD/JPY Moves North

The dollar seems to be gaining points against its peer, the Japanese Yen. The USD/JPY exchange rate reached a low pf 108.11 amid high volatility and political uncertainties with the introducing of the draft of new tariffs and trade changes coming out of the US.

As market grew worried, the US currency depreciated and the stock market pulled back. While equities still haven't recovered quiet as well, the US dollar is doing a good job in the recovery process.

The USD/JPY pair reached a high of 109.30 and is now trading very close to it. The pair might concentrate around this level until the announcement of the latest NFPs and jobs data scheduled to be released in less than an hour.

Chart: USD/JPY H4