Gold Sell Of on Hold

The sell off in the precious metal has been somewhat troublesome as Gold has been going through support zones and SMA levels without a sign of a halt. Currently, Gold is seen to be taking a breather from the steep downfall at its current market price of $1,210.

The precious metal dipped to $1,204 last week and market participants were quick to get their longs as it went right to the previous low made in July 2017.

The precious metal is facing a dilemma now whether to continue its short term trend to the downside or move up using the support level with increased momentum and trust. Some experts are already eyeing the $1,000 level amidst a stable US economy and healthy signs of growth.

Chart: XAU/USD D1

GBP/AUD Falls Below Support

The GBP/AUD pair is now trading below long term support as it broke the support level at 1.7733 which also collided with the 200SMA serving as another tool to sustain the upside momentum of the pair.

However, market participants were eager to sell the pair breaking both the 200SMA and the support line. Currently, GBP/AUD is trading at 1.7530 and it seems that it's going to go for the next support level at 1.7400 which would create a double bottom.

The Sterling is depreciating against all counterparts in the early trading hours of the European Monday session. No major news are scheduled for today so we could see a continuation of trading based on technicals.

Chart: GBP/AUD D1

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EUR/CAD Sell Off

EUR/CAD has been trading to the downside for the past three days as the pair is going through a heavy selling wave. The short term momentum implies that the exchange rate will continue to trade lower as market participants are aiming towards the support level on the medium term at 1.5000.

The pair has other indications of a bearish market, namely the main moving averages and the fact that EUR/CAD is trading below them. Last week the pair went below the 200SMA and now the three of them, 50, 100 and 200SMA are gravitating above the exchange rate.

If EUR/CAD can reach the support level we could expect strong bullish reaction in the initial time as an attempt to buy at the bottom and potentially reverse the trend. On the long term, however, the pair is still making good bullish steps.

Chart: EUR/CAD D1

GBP/CAD At Support

GBP/CAD is now trading near short term support level at 1.7083. The pair went as low as 1.7060 before the bulls jumped at the chance and went long it. It's worth noting that the pair has not yet achieved a double bottom in accordance with the previous low at this level in the end of May.

It would be best to wait for a clear double bottom before opening long positions. However, chances are that this week is bound to be volatile-heavy for the pair as we are yet to see Thursday's news impact on the Sterling.

Bank of England will release the Inflation report along with the Interest rate decision which is expected to rise with 25 basis points from 0.50% to 0.75%.

Chart: GBP/CAD H4

USD/JPY Moves Up

USD/JPY is trading higher today as market participants sold the Japanese yen in the early trading hours of the Asian session. The Japanese yen is losing value against all major counterparts, namely USD/JPY, CHF/JPY and GBP/JPY.

The USD/JPY exchange rate is again above the resistance line on the long term downward trading channel. The pair broke the resistance in the beginning of July and then briefly dipped below it again just to rise above.

This time the breakout seems stronger and the bull camp determined to keep the fire going. It bulls manage to sustain the momentum we could see USD/JPY go to first target at 113.20 and onward to new horizons.

Chart: USD/JPY D1

NZD/CAD Backed By Support

NZD/CAD reached the support level last week during the early hours of the US trading session on Friday. The pair went as low as 0.8830 and was supported by market participants to levels beyond 0.8870.

The pair is seen to consolidate between two narrowing lines of support and resistance on the long term. If bears can get a break below 0.8750 this would indicate a new leg down that could turn into another medium term downturn.

On the other hand, if bulls get the strength to push the pair up, we could see a break above 0.9400 which would invalidate the medium term bearish trend and create opportunities for levels not reached since late 2016 early 2017.

Chart: NZD/CAD D1