Gold (XAU/USD) experienced a decline on Monday after failing to surpass trendline resistance at $2,375 on Friday. Prices retreated below the $2,350 mark as the new week began. If losses continue to deepen, a potential support area could materialize around May’s low and the 50-day simple moving average, approximately at $2,280. Further downside momentum may draw attention to the $2,260 level.
On the upside, if buyers regain firm control and drive prices higher, the initial technical obstacle to monitor lies at $2,350. This is followed by the previously mentioned dynamic trendline, now intersecting at $2,365. Continued upward movement beyond this point could strengthen buying pressure, setting the stage for a rally towards $2,420 and potentially $2,430.
EUR/USD Forecast – Technical Analysis
EUR/USD advanced on Monday, surpassing both its 50-day and 200-day simple moving averages around 1.0785. Sustaining this bullish breakout, resistance overhead extends from 1.0805 to 1.0810. While overcoming this barrier may present a challenge, a breakthrough could pave the way for a relatively smooth ascent towards 1.0865, the 50% Fibonacci retracement level of the 2023 selloff.
Conversely, if sellers stage a comeback and push the pair below the aforementioned moving average indicators, sentiment towards the euro could sour, potentially triggering a pullback towards 1.0725 and 1.0695. Further declines beneath this critical support could initiate a descent towards 1.0650, the trough of May.
USD/JPY Forecast – Technical Analysis
USD/JPY continued its upward trend on Monday, consolidating above the 156.00 level. If this momentum persists in the coming days, resistance lies at 158.00, followed by 160.00. However, caution is advised with any ascent towards these levels due to the potential for FX intervention by Japanese authorities to strengthen the yen, potentially leading to a sharp reversal in the pair.
Alternatively, if selling pressure reemerges and prompts a reversal, initial support is situated at 154.65. While stabilization is anticipated around this zone during a pullback, a breach could accelerate a decline towards 153.15. Continued weakness might draw attention to trendline support and the 50-day simple moving average near 152.50.
