EUR/USD At Support

The EUR/USD is trading at support in the face of the 200SMA. The pair reacted very sharply to the latest NFP and unemployment reports going from 1.1161 to a low of 1.1045. Previous high for the pair was 1.1233, a level reached before the Brexit happened.

Now the pair is trading at 1.1077 and today is the third day for the EUR/USD to hold onto the 200SMA. However, looking back, the pair has been trading at the level for quite a while and market participants might as well have built tolerance and they might not consider this anything special.

No major news are expected today so we might see a calm day for the pair.

Chart: EUR/USD D1

EUR/USD Lower After Upbeat US Data

The US dollar surged after second consecutive NFO above +250K. The EUR/USD was trading at 1.1235 before the news and immediately retreated to lower levels reaching 1.1046. The pair recovered slightly this morning and is now trading at 1.1097. However, with the latest report market participants are again anticipating a rate raise which may further depreciate the pair.

With the latest report it became clear that Job growth is above expectations, driving investors to the US economy. The unemployment rate stays unchanged at 4.9%.

Here is the data released on Friday:

- USD Unemployment Rate (JUL): 4.9% versus 4.8% expected, from 4.9%.

- USD Change in Non-farm Payrolls (JUL): +255K versus +180K expected, from +287K.

- USD Labor Force Participation Rate (JUL): 65.4% versus 65.5% previously.

- USD Average Hourly Earnings (JUL): 2.6% versus 2.6% expected, from 2.6% (y/y)

Chart: EUR/USD H4

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Gold Lower

Gold is trading lower in today's session after yesterday's high at the resistance of $1,367. The precious metal reached its peak and started declining making a low of $1,350. Gold bulls could not sustain the momentum built from the rally that started at $1,200 so they gave in to the bears who managed to take control and effectively bring price down with more than $15 in a day.

However, considering the strength Gold has gained throughout the year, the rally is most likely to continue as we are especially close to the $1,400 level milestone. In my own view, Gold will reach $1,400 before the end of the month as it is already beyond the downward channel on the long-term starting from the history high of $1,920.

Chart: XAU/USD D1

Gold at Resistance

Gold reached resistance in yesterday's trading session. The precious metal rose to a high of $1,367, still lower than last month's high of $1,375, and is now trading at $1,364. So far today we are witnessing light volumes which indicate that a change in trend is probable.

Gold is expected to pick a direction depending on the forces from both sides - bulls need to get past the resistance at current market price, meaning that if they get a close above $1,370, then $1,400 becomes a real possibility. On the other hand, bears need to put more effort into withholding price. If they can keep it under $1,370 today, they would have a big chance of a market turn.

Whatever happens, Gold is one of the most exciting assets to trade this year.

Chart: XAU/USD D1

USD/JPY Consolidating

USD/JPY has been consolidating since the beginning of the week. The pair reached a low of 101.97 and is currently trading at 102.27. Main trend on the short-term remain bearish as the bears took control over the pair when it reached the resistance zone at 107.49 and has been falling since.

First support zone may be found at current market price, second support zone is seen at 101.70. If that level is broken we might revisit lowest low at 98.95 and as a major support zone bears might attempt to go to 98.

No major news are expected from both sides, which means that technicals would most likely play the major role in defining the trend for the week.

Chart: USD/JPY H4

AUD/USD Close to Resistance

AUD/USD traded higher in Friday's session going from a low of 0.7492 to a high of 0.7609. The pair is now trading at 0.7611 and is really close to visiting major resistance on the long-term. 0.7650 is seen as resistance and first bull target. If bulls manage to push through that level then we might see the pair going to 0.7680 and then thirdly 0.7840.

On the other hand, a failure to break the first resistance level would activate the bearish momentum and bears will push prices down to first support zone at 0.75. The price consolidated for several days around the 0.75 level and then reacted to the FED's decision to not raise rates. This was the catalyst that drove prices higher. If this effect is mitigated then bearish movement is likely to prevail over the pair.

Chart: AUD/USD D1