Euro/dollar closed significantly lower yesterday and tested key support at 1.1720. However, the random indicator entered oversold territory, waiting for this factor to push the euro/dollar back up and resume its expected bullish trend in the coming period, with the first target at 1.1870.
Sterling/DOLLAR broke clearly below bullish channel support and closed below that level yesterday, which could put bearish pressure on the exchange in the next few sessions, potentially testing the next bearish target of 1.2705.
Usd/JPY has not shown any strong performance in the past few sessions. From the 4-hour chart, it continues to move around EMA 50, which makes our bullish view still valid, with the first target at 106.44. It should be noted that usdjPY above 105.20 is important for continued bullish expectations.
Gold came under strong negative pressure yesterday, breaking below $1901.80 an ounce and hitting our first waiting bearish target of $1877.00 an ounce, supporting the bearish trend scenario for the day and in the short term. Now wait for gold to fall further and test its next target of $1,860.80 an ounce.
As a result, we will continue to expect gold to be bearish for some time to come. From the 4-hour chart, gold is trading below the EMA 50 index, which supports bearish expectations. It should be noted that gold’s bearish outlook is sustained if gold stays below $1,901.80 an ounce and, most importantly, below $1,915.00 an ounce.