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EUR/USD starts the session near 1.1615 as the market prepares for the ECB meeting. Expectations of an interest rate hike support the euro, as investors factor in the regulator’s need to respond to rising inflation risks. The likelihood of stronger signals regarding future policy limits interest in selling the European currency.
EURUSD: SELL 1.1585, SL 1.1600, TP 1.1450.
The situation continues to develop according to the scenario previously considered. It involves the formation of a downward impulse. At the moment, there are waves i and wave ii, which represents a zigzag.
XAUUSD: BUY 4396.23-4453.83, TP1-4511.43, TP2-4627.73.
Long-term trend: long. The maximum accumulation of volumes for the current contract is located in the range of quotes 4380.00β4430.00. Currently, investment operations on XAUUSD are being carried out within the specified range, which indicates temporary uncertainty.
Gold starts the week under pressure after strong US employment data increased the likelihood of Fed policy tightening. Rising US bond yields reduce the attractiveness of the metal, which does not generate interest income.
Monthly option contracts are trading in the comfort zone above the day balance level of 0.7199. The price has formed an upward impulse with a target at 0.7261. A strong medium-term support level is located around 0.7190, where buying is favorable. The main impulse target is in the 0.7260 area. Continued medium-term priority and active growth from current levels are expected.
Gold managed to rebound following the bearish action seen in the first half of the week. US August inflation data could help markets decide whether the Fed will raise rates. The near-term technical outlook highlights a slightly bullish stance that lacks momentum.
United States employment data delivered a positive surprise ahead of critical inflation data. The European Central Bank is widely anticipated to hike interest rates by 25 basis points. EUR/USD maintains its neutral stance as investors await central bank updates.
Dow Jones (DJIA) has been trading within a Channel Up since the March 2009 bottom of the U.S. Housing Crisis. During the course of this multi-year trend, the 1M MA50 (blue trend-line) has acted as the long-term Support and the ultimate buy entry for long-term buying.
EURUSD: BUY 1.1610, SL 1.1585, TP 1.1655
Price is trading in the comfort zone, above the day’s balance level of 1.1625. An active engulfing pattern has formed with a new bullish model and a target around 1.1674. A high probability of continued medium-term growth from current levels is expected. The main support level is located at 1.1610, where it is favorable to buy the pair. Growth from current levels is also possible. The intermediate target for the upward impulse is around 1.1655.
EURUSD: BUY 1.1625, SL 1.1595, TP 1.1700
The euro maintains support due to an improving economic backdrop in the eurozone. Manufacturing activity expanded at its fastest pace in over four years in August, while the services sector remained in growth territory. These figures reinforce the assessment of economic resilience and allow the market to factor in the possibility of an ECB rate hike in September.
