EUR/USD Consolidation

EUR/USD has been consolidating around 1.06 for the past few days. It seems that nothing is strong enough to drive the market participants in either directions. The pair made a high of 1.06289 today and is now back towards the 1.06 level.

If the price continues to consolidate we might see a loss of interest and a bearish takeover with first short-term target at 1.0522. Lower than that we might be heading towards parity, given that the Trump administration continues to boost market expectations.

On the other hand, if we get bad economic data this week from the US, Euro bulls will use the opportunity to push price higher to a possible first target at 1.0680.

Chart: EUR/USD H4

Gold at Resistance

Gold is trading at resistance today reaching a high of $1,258. The precious metal is having a good rally that started in the middle of December last year when price was $1,122. Although the big players such as George Soros and John Paulson ditched Gold last month on rumors that the Trump tidal wave will continue, the precious metal keeps rallying to new highs.

Price reached multi-month high on Friday when Gold touched $1,260, which also happens to be the 200SMA. The latest high marks the resistance in the medium-term outlook. Bulls, however, look determined to get over it as expectations for a strong 2017 for Gold continue.

If market closes above $1,260 today we would have a clear indication that current market price will be left behind. If price closes below $1,260 today, then it would be best to sell with tight stop or to wait for more certain times to buy in.

Chart: XAU/USD D1

EUR/USD Below Support

EUR/USD is trading below support in the preopening hours of the European session. The pair is now 1.0522 as it went below the support at 1.0540 yesterday. Euro bulls now have the task to bring the price up from current level which also happens to be a non-validated double bottom on the short-term. If they succeed, then price should be back in the uptrend channel sooner than later.

On the other hand, market participants are taking into consideration the upcoming FOMC minutes later today and that could have a drastic impact on the market, more specifically, the EUR/USD pair.

Until then, market could continue to gravitate towards current levels. Major support rests at 1.0440, while major resistance is located at 1.0720.

Chart: EUR/USD H4

Gold Moves Lower

Gold bugs are having a time out today as the precious metal is decreasing in price due to a sharp upward move in the US dollar. Gold reached a low of $1,227 and is now trading at $1,230. Although the precious metal is down today, the bullish move remains intact.

Gold started to appreciate when it reached a low of $1,121 in December last year and went as high as $1,244 just a few days ago in the beginning of February this year.

Market sentiment remains bullish and we can expect the momentum to keep pushing the price up to a possible first target of $1,250, second important price level is the 200SMA which falls on $1,260 and major bull target is seen at $1,380.

On the other hand, if bears take control, price is expected to revisit first support at $1,200, second at $1,180 and third and major support at $1,130.

Chart: XAU/USD D1

Silver Down

Silver is trading to the downside in today's session. The precious metal reached a low of 17.83 as an intraday low and is now trading at 17.88. Main trend on the short-term remains bullish and today's depreciation might be regarded as a correction before the move continues higher.

A factor that could be in favor of the continuation of the bullish move is the 200SMA and more specifically the fact that current market price is being supported by it. If price manages to stay above the 200SMA we might see improved bullish confidence in the metal and witness a move higher.

First bull target is seen at 18.50, major bull target is 19.80.

Chart: XAG/USD D1

USD/PLN Higher

USD/PLN is trading to the upside since the beginning of February this year with price going from 3.9776 to a high of 4.0877. The pair is in a bull rally due to weak Polish fundamentals and respectively strong data coming from the US. Dollar bulls may try to bring it up to a first target at 4.1122. In that case, they would have to go through immediate resistance at 4.08.

On the other hand, Polish bulls have a slight advantage in current market environment due to the immediate resistance and weak volumes. They could push it down to major target of 3.9300. Bears have to go through a few support levels namely 4.0370, 3,9740.

The long-term trend remains bullish, the short-term is still bearish until we can get above 4.2800.

Chart: USD/PLN H4

GBP/NZD Consolidating

GBP/NZD opened the European session higher in comparison to last weeks levels. The pair reached an intraday high at current market price of 1.7372 and is now facing immediate resistance. The Sterling had a bad week last week when it depreciated against major opponents.

Now, the British currency appears to be gaining trust again. GBP/NZD is reacting bullishly to market conditions and now eyes are on first resistance level at 1.7480. Major bull target rests at 1.7710.

On the other hand, Sterling bears might attempt to bring it down below last week's level and close at 1.72. Major bear target is seen at 1.6895.

Chart: GBP/NZD H4