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Message: [QUOTE="zForex, post: 225158, member: 88093"] [ATTACH type="full" width="937px"]25481[/ATTACH] Euro Trades Stably Near 1.06 Awaiting US Consumer Inflation Data The euro is currently striving to stay above 1.06, exhibiting stability in a tight trading range while awaiting vital US Consumer Inflation updates. The Federal Reserve's recent meeting minutes didn't bring any surprises, leaving uncertainty about the possibility of a 25-point rate hike. As expected, the currency pair remained directionless near 1.06, aligning with previous predictions of consolidation after a dip to 1.0448. Although the euro made modest gains, the technical outlook suggests a substantial uptrend is challenging without new macroeconomic data. Today's US inflation report is crucial, potentially introducing significant volatility. The economic agenda also includes US weekly initial jobless claims, closely watched for their impact on the economy. Given these impending announcements, a cautious approach is advisable, and maintaining long euro positions may not be prudent in this uncertain environment. EUR/USD is currently in an accumulation phase waiting for a possible reversal. If a reversal is confirmed, the next resistance area will be at 1.0750 while the next support level will be at 1.0500. [TABLE] [TR] [TD]Resistance 3 [/TD] [TD]Resistance 2 [/TD] [TD]Resistance 1 [/TD] [TD]Support 1 [/TD] [TD]Support 2 [/TD] [TD]Support 3 [/TD] [/TR] [TR] [TD]1.0830 [/TD] [TD]1.0750 [/TD] [TD]1.0650 [/TD] [TD]1.0500 [/TD] [TD]1.0400 [/TD] [TD]1.0200 [/TD] [/TR] [/TABLE] [ATTACH type="full"]25479[/ATTACH] Pound Maintains Bullish Stance Amid Weak UK Factory Data The Pound Sterling (GBP) continues to hold its ground in spite of weak UK factory data for August. The GBP/USD pair remains bullish despite the Office for National Statistics (ONS) reporting that UK factory data contracted for the second consecutive month. This contraction was driven by UK firms operating at reduced capacity to enhance efficiency, which involved cutting inventory backlogs and labor forces due to declining demand. This slowdown in demand and overall output poses concerns for Bank of England (BoE) policymakers as they prepare for the upcoming interest rate decision in November. While some, like BoE's Katherine Mann, lean towards tightening policy to curb inflation and bring it down to 2%, Swati Dhingra from the central bank supports a rate cut if the growth rate falls beyond expectations. Concerns about potential inflation rebounds persist due to geopolitical tensions in the Middle East, which could keep the oil market tight until 2024. Additionally, the UK faces energy shortages due to supply chain disruptions, which could exacerbate headline inflation and challenge the government's commitment to halve it to 5.2%. GBP/USD continued its advance toward the 1.2300 target and now the price facing some resistance at that level. A comeback will take the price toward the 1.2200 support level and a breakout up will take the price to the 1.2450 level. [TABLE] [TR] [TD]Resistance 3 [/TD] [TD]Resistance 2 [/TD] [TD]Resistance 1 [/TD] [TD]Support 1 [/TD] [TD]Support 2 [/TD] [TD]Support 3 [/TD] [/TR] [TR] [TD]1.2600 [/TD] [TD]1.2450 [/TD] [TD]1.2300 [/TD] [TD]1.2200 [/TD] [TD]1.2100 [/TD] [TD]1.2000 [/TD] [/TR] [/TABLE] [ATTACH type="full"]25478[/ATTACH] Divergent Fed Views Impact USD/JPY as FOMC Minutes Awaited The USD/JPY pair ended a two-day winning streak, trading around 149.00 in the Asian session, amid concerns over the Federal Reserve's rate-hike plans. Fed Governor Christopher Waller has expressed caution, suggesting that market tightening might suffice without immediate action. In contrast, Fed Governor Michelle Bowman leans toward more rate hikes, citing persistent inflation. The Federal Open Market Committee (FOMC) minutes reveal a divergence in views, emphasizing data-driven decisions. The US Producer Price Index (PPI) rose in September, exceeding expectations at 2.2%. Attention now turns to the Consumer Price Index (CPI) release, forecasting a potential drop from 3.7% to 3.6%, and the upcoming Jobless Claims report. The US Dollar Index (DXY) faces challenges around 105.50 due to subdued US Treasury yields. The Japanese Yen (JPY) weakens, as the Bank of Japan (BoJ) maintains an ultra-easy monetary policy, focusing on wage growth and inflation control. BoJ board member Asahi Noguchi supports flexibility under Yield Curve Control (YCC) to balance economic recovery and inflation management amidst rising inflation expectations. USDJPY continues hovering around the 150.00 area with a small correction. The next support level is at 146.80 followed by the 144.80. A possible reversal is the most awaited scenario. [TABLE] [TR] [TD]Resistance 3 [/TD] [TD]Resistance 2 [/TD] [TD]Resistance 1 [/TD] [TD]Support 1 [/TD] [TD]Support 2 [/TD] [TD]Support 3 [/TD] [/TR] [TR] [TD]155.00 [/TD] [TD]152.70 [/TD] [TD]151.50 [/TD] [TD]148.00 [/TD] [TD]146.50 [/TD] [TD]146.00 [/TD] [/TR] [/TABLE] [ATTACH type="full"]25480[/ATTACH] Geopolitical Tensions and Weaker Dollar Propel Gold to Two-Week Highs The price of gold has rebounded from a seven-month low, reaching a two-week high amid geopolitical tensions, declining bond yields, and a weaker US dollar. The recent surge in gold's value is driven by Middle East conflicts, making it a preferred safe-haven asset, coupled with the depreciation of the US dollar. Falling global bond yields are also supporting the non-yielding precious metal. The recent recovery has allowed gold to recoup over 30% of its September losses, despite a generally positive tone in equity markets. Speculations about the Federal Reserve nearing the end of its rate-hiking cycle suggest an upward trajectory for gold. However, traders are awaiting the US Consumer Price Index (CPI) report later in the North American session to gain fresh insights into the Fed's rate-hike path. A decrease in US inflationary pressures could solidify expectations of the Fed maintaining its current policies in November, potentially leading to a rate cut in Q2 2024. This scenario could further weaken the US dollar and drive demand for gold. Conversely, a strong CPI report could keep the door open for another Fed rate hike by year-end, causing gold bulls to reconsider their positions. Gold continues its recovery and tries to break the 1875-80 resistance level going toward the 1900 target. Today's data will dictate the direction. [TABLE] [TR] [TD]Resistance 3 [/TD] [TD]Resistance 2 [/TD] [TD]Resistance 1 [/TD] [TD]Support 1 [/TD] [TD]Support 2 [/TD] [TD]Support 3 [/TD] [/TR] [TR] [TD]1920 [/TD] [TD]1900 [/TD] [TD]1880 [/TD] [TD]1875 [/TD] [TD]1855 [/TD] [TD]1830 [/TD] [/TR] [/TABLE] [/QUOTE]

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