GBP/AUD Close to Resistance

The British Pound is having a day in the green today as the UK currency is moving up against all its peers. GBP/AUD was trading around 1.6350 in the opening hours of the first session of the week and is now up substantially to a high of 1.6430. The pair is currently trading at 1.6424. 

The move up does not seem fatigued as the pair is now very close to the resistance level of 1.6455. The level is seen as short term resistance for the pair and if it is taken out, next major bull target is expected at 1.6740. For this to happen, the Sterling has to receive a lot of support both fundamentally and technically. 

Around the level of 1.67 lays the 200SMA which would be another obstacle in the bulls' way. On the way down, bears have their targets at 1. 6120, 1.6000 and 1.5800.

Chart: GBP/AUD H4

Silver at Resistance

Silver is now trading at $17.90 meeting with the resistance at $18.00. The precious metal is still hesitating and it is clear that bears are trying to put it down at current level. The strong resistance comes at a point where the US dollar is not selling with such rapid speed as before indicating that investors and traders are trying to pile up on it and drive the price up.

Silver, on the other hand, is feeling the effect of a steady dollar and has temporarily ended its advancement from $15.11 to $18.00 in three months. Silver would need to break the resistance and close above $18.00 if bulls want to keep on enjoying the rally.

No major US news are expected this week so we might continue to see Silver trading sideways before something new happens that could create a stir and give a hint of the probably direction of the precious metal.

Chart: XAG/USD H4

EUR/USD Slightly Up Before ECB

The Euro is trading a bit higher anticipating the interest rate decision of the ECB later today. The expected rate is to remain unchanged at 0.00%. Nevertheless, that could still drive the price of the Euro up substantially given that after the announcement, ECB President Mario Draghi will deliver a speech on the economic and political conditions currently prevailing in the European Union.

Price is now 1.1970, up from today's low of 1.1917. First bullish resistance is expected to be met at the last major high of 1.2070. In case we hear an alarming message from the ECB President, market participants might turn their capital to the US dollar and depreciate the pair's price to first bear target at 1.1860.

The ECB Press Conference will be a key event that could direct the European currency for the whole month of September. If we get a clear strong message that Europe is doing well, then the Euro might continue on its course to be the single most appreciated currency for the year of 2017.

Chart: EUR/USD H4

Gold Keeping Up With Gains

Gold has been rallying since mid-July this year as the US dollar has been depreciating. Market participants continue to flock to the safe haven asset amid global political uncertainty and geopolitical tensions caused by North Korea.

The precious metal reached a high $1,344 in the early trading hours today and is now trading slightly below that level at $1,340 with a low of $1,335. Almost a year high (last one was Sep 22), the $1,344 level will meet serious resistance if the geopolitical tension loosens up. First major resistance is spotted at $1,350 which would be a touch on the upper long term trend line starting from Gold's low point of $1,122 on Dec 22 last year.

Whatever the case may be, Gold is again showing signs of strength as hedge fund legends as Ray Dalio continue to point out that every investor needs to own Gold in such perilous times as these.

Chart: XAU/USD H4

Will the Euro Continue Rallying in September?

The Euro is definitely having its best year for at least 5 years of trading history. The single European currency has significantly increased its worth against the US dollar going from a low of 1.03 to a high of 1.20 in exactly 8 months, starting from January until August.

September brings us with the expectations that with the summer closing in, market participants will dive again into trading and create new opportunities. This means that we can certainly expect higher volatility. What we cannot be sure, however, is will the Euro keep going.

The latest rally came without any serious corrections, implying that the move will still continue to the upside. What we can tell for sure is that the pair is well above the 200SMA and is holding up very well above the upper trendline resistance-turned-support.

Chart: EUR/USD D1

Gold Opens with a Gap

Gold opened the trading session with a gap of about $10 jumping from $1,322 to opening price of slightly above $1,332. The reason for the gap open is the weekend geopolitical tension created by North Korea. The continuation of missile launches directed to targets in Japan's sea is raising concerns amid the political scene. World leaders are calling for provocation to stop. South Korea says it expects further missile launches, Russia and Japan are calling for North Korea to stick to the UN resolutions and Trump is threatening with a massive and effective military response.

All of this creates uncertainty. And in the midst of uncertainty Gold thrives. If these tensions continue to spell dark clouds we might see Gold break the barrier of $1,400 this month.

So far today Gold reached a high of $1,339 and is now trading at $1,333. More hedge funds pile Gold into their portfolio as major currencies are seeing some outflows of capital.

Chart: XAU/USD D1

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