EUR/USD – ECB meeting will set up the mood for the major pair, the pair will move to consolidation

Technically EURUSD moved lower and declined last week following its latest impulse higher within the overall uptrend that has been in place now for months. As the technical pictures shows the current trend is still bullish and going long is preferable on weakness as the pair moves lower to support areas. This week, support area is located around Eur 1.1710 and it is a kind of buy-area. We remain bullish above 1.1600 but there are some signs that may warns that upward impulse is getting weaker. On Friday after the release of weak US labor data, the pair soared to 1.1979, but then rebounded sharply and could not complete recover above 1.1900. Looks like there is strong bearish volume around ​​the 19th figure. Another negative signals: a false breakdown of 1.20 and a reversal candle for August 29, the inability of the last three daily candles to close above 1.1910, the bearish divergence of the MACD indicator. So be careful and look for market reaction after ECB meeting.

Gold market receives support from geopolitics  

As we discussed earlier, the gold market moved higher and passed 1300 without any difficulties. It is clear that gold is in a strong uptrend and after the recent breakout above 1300.00 area key resistance, it seems that the trend is very solid and could continue higher. When the market get a retrace lower, this is a chance to join the movement. However, the main support zone is still around 1300. The closest resistance is around 1.1340.

AUDUSD moved to consolidation but still in the uptrend

For the last week, AUD traded in up-and-down manner. However, this market failed to gain healthy upward momentum and escape consolidation area. We still see the potential for more upside in this market in the coming days and continue to look bullish  whilst above 0.7870. Look for middle-term longs when the market retrace lower in 0.7820 area.

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