Bulls hold grip and keep initial targets at 156.78 (May 14 high) and 157.01 Fibo 61.8% of 160.19/151.85 correction.
The pair hit new weekly high on Wednesday, as the dollar stands at the front foot ahead of release of minutes of Fed’s last policy meeting, as traders await fresh signals about the central bank’s next steps regarding interest rates.
Technical picture remains bullish on daily chart and supports near-term action, though some headwinds on approach to 156.78/157.01 barriers cannot be ruled out, as stochastic broke into overbought territory.
Limited dips should be ideally contained above 156.00/155.85 zone (broken 50% retracement/10DMA) to keep immediate bulls intact for probes through pivotal 157 resistance zone.
Caution on potential break below 155.00 support (broken Fibo 38.2% / psychological) which would put bulls on hold.
Res: 156.78; 157.01; 157.98; 158.22.
Sup: 156.00; 155.85; 155.00; 154.69.
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
Recommended Content
Editors’ Picks
EUR/USD extends slide below 1.0700 on stronger USD, EU political angst
![EUR/USD extends slide below 1.0700 on stronger USD, EU political angst](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/EURUSD/dollar-and-euro-bills-58059534_XtraSmall.jpg)
EUR/USD stays under bearish pressure and trades at its lowest level since early May below 1.0700. Unabated US Dollar demand amid risk aversion and looming EU political uncertainty exert downside pressure on the pair heading into the weekend.
GBP/USD slumps to multi-week lows below 1.2700
![GBP/USD slumps to multi-week lows below 1.2700](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/GBPUSD/iStock-688526532_XtraSmall.jpg)
GBP/USD extends its decline on Friday and trades at its lowest level in nearly a month below 1.2700. In the absence of high-tier data releases, the US Dollar continues to benefit from souring market mood, forcing the pair to stretch lower in the second half of the day.
Gold clings to recovery gains at around $2,330
![Gold clings to recovery gains at around $2,330](https://editorial.fxstreet.com/images/Markets/Commodities/Metals/Gold/stack-of-golden-bars-in-the-bank-vault-60756080_XtraSmall.jpg)
Following Thursday's pullback, Gold holds its ground on Friday and trades in positive territory near $2,330. The benchmark 10-year US Treasury bond yield edges lower toward 4.2%, helping XAU/USD push higher ahead of the weekend.
Monero price poised for a downward correction
![Monero price poised for a downward correction](https://editorial.fxstreet.com/images/Markets/Currencies/Cryptocurrencies/Coins/Monero/monero_XtraSmall.jpg)
Monero price has encountered resistance at a critical level. The technical outlook suggests a potential short-term correction as momentum indicators signal a bearish divergence.
Week ahead – RBA, SNB and BoE next to decide, CPI and PMI data also on tap
![Week ahead – RBA, SNB and BoE next to decide, CPI and PMI data also on tap](https://editorial.fxstreet.com/images/Macroeconomics/MonetaryPolicy/SNB/entry-portal-of-swiss-national-bank-snb-in-berne-25617383_XtraSmall.jpg)
It will be another central-bank-heavy week with the RBA, SNB and BoE. Retail sales will be the highlight in the United States. Plenty of other data also on the way, including flash PMIs and UK CPI.