On Friday, the U.S. dollar is trading a bit on a lower side as investors seem to do profit-taking ahead of the weekend. It's losing versus most dominant currencies, as central banks in Switzerland and the United Kingdom avoid following the Federal Reserve in lowering rates, while risk appetite declined due to lack of aggressive remarks about U.S-China trade talks.
The investors will be looking to trade the Canadian core retail sales data later in the along with Eurozone's consumer confidence.
EUR/USD - Wait for Breakout or Trade Choppy
On Thursday, EUR/USD opened with 1.10298 and placed a high of 1.10734; the overall trend was bullish today. The data related to the current account and Spanish 10-yr bond auction were released today in favor of the euro currency. The pair is currently trading at $1.10554 rate.
On Wednesday 14:00 GMT, the release about consumer price index (CPI) showed no change in Eurozone's inflation rate, which was disappointing. According to Luis de Guindos, the Vice President of the European Central Bank (ECB), the European bank will not raise the interest rates as long as inflation meets the bank's target.
EUR/USD - Daily Technical Analysis
The EUR/USD technical outlook is still neutral as the pair have started trading in the current trading range of 1.1080 - 1.1020. Recalling our previous update, the EUR/USD had already completed 61.8% Fibonacci retracement around 1.1020 level, and now that's extending some serious support to the EUR/USD.
On the other hand, the MACD is trading above and below crossover point 0, suggesting neutral sentiment among traders. Likewise, the RSI is also holding neutral around 50, direction choppy trends in the market.
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EUR/USD - Technical Levels
Support Resistance
1.1026 1.1065
1.1011 1.1089
1.0971 1.1128
Pivot Point 1.105
EUR/USD - Daily Trade Sentiment
On Friday, we can experience choppy trading in the EUR/USD as it can stay within 1.1080 - 1.1020. The bullish breakout can offer us further buying until 1.1120.
AUD/USD - 50% Fibonacci Gives a Hard Time to Bears
On Thursday, the Australian dollar fell dramatically lower, from 0.6850 area to 0.6789 in order to complete 50% Fibonacci retracement. Most of the selling came due to weaker Aussie and a stronger dollar, especially after the Federal Reserve cut the interest rate but sounded hawkish for the upcoming policy meetings.
Aussie weakened after worse than expected labor market report from the Australian economy. The nation scored 34.7K new job positions in August, although the market totaled 50.2K part-time jobs and wasted 15.5K appointments. On the other hand, the unemployment rate ticked higher to 5.3%, as the participation rate also grew to 66.2%.
The Aussie is also being influenced over weaker economic events from China and due to lack of positive developments in the U.S. China Trade war.
AUD/USD - Daily Technical Analysis
Following yesterday's sharp dip in the AUD/USD, the Aussie is standing still above 50% Fibonacci retracement level. The 50% Fibo levels are extending reliable support around 0.6788. A bearish breakout can continue to drop until 0.6765; however, it's only likely in the case of bearish breakout of 0.6788 level.
The MACD and RSI both are holding below their crossover levels, suggesting stable bearish bias among traders. On the upperside, the 0.6820 may extend resistance to the Aussie Dollar pair.
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AUD/USD - Technical Levels
Support Resistance
0.6781 0.681
0.6766 0.6824
0.6737 0.6853
Pivot Point 0.6795
AUD/USD - Daily Trade Sentiment
Considering the dovish RBA and the hawkish Federal Reserve, the AUD/USD may continue to trade lower. Let's wait for 0.6780 breakouts to open a sell position until 0.6760 and 0.6740.
Gold - XAU/USD - Wide Trading Range in Focus
On Friday, the yellow metal gold prices edged higher to trade at 1,504 area after testing a low of 1,484 yesterday. A bullish trend in gold is supported by the profit-taking in the U.S dollar. Moreover, the traders also remain cautious over developments in Sino-U.S. trade talks.
Gold prices are now holding around $1,503.20 per ounce, and are on track for its first weekly surge in four, having climbed approximately 1% this week.
Gold - XAU/USD - Daily Technical Analysis
Gold's trading range has widened following the release of hawkish FOMC and Fed Rate Cute from 2.25% to 2%. The current range is 1, 509 - 1,485. Gold can stay bullish up to 1509/10 today, and we can expect a drop here. However, in any case, if it violates the 1510 area, the next target is likely to be 1,522.
On the side of the leading indicator, both the RSI and MACD are showing a bullish crossover, which means the bullish trend is likely to begin in the gold.
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Gold - XAU/USD - Daily Technical Levels
Support Resistance
1494.1 1507.91
1486.88 1514.5
1473.08 1528.31
Pivot Point 1500.69
XAU/USD - Daily Trade Sentiment
Gold may stay bullish above 1,500 area a target of 1,510, and bullish breakout of 1,510 may lead it towards 1,522 regions.
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