Spreads
Spreads
Spreads
Spreads
Spreads
GBPUSD holds above the support level of 1.1876 at the time of writing ahead of the FOMC meeting. The US dollar remains strong and outperforms the British Pound on the back of better-than-expected ISM Service PMI economic data.
From the technical aspect, the outlook of GBPUSD remains bearish on the four-hour chart as the pair falls within and below the descending channel, suggesting that GBP is lack attraction. In the meantime, a bearish MACD continues to lend support to bears while the RSI is on the edge of 30 readings. The pivot support of 1.1876 would be viewed as a defending cross-line, whether regaining the buyers’ confidence. If the support cannot sustain, then it is expected to see the currency pair extend further south.
Resistance: 1.2063, 1.2178, 1.2272
Support: 1.1876
USDJPY edges slightly lower but keeps above the 135.00 level ahead of the FOMC meeting.
From the technical perspective, the outlook maintains its bullish trend on the four-hour chart as the pair continues to trade within the ascending line. On the downside, falling below the support of 134.89 would bring the pair to the downside in the near- term. On the upside, the divergent monetary policies between the Fed and the BOJ would capitalize on the USD’s gain and undermine the Japanese Yen. As the RSI remains on the midline, further price action is eye on the FOMC meeting.
Resistance: 135.7, 137
Support: 134.89, 134.24, 133.59
Gold extends its slump below $1740, a fresh 10- month low ahead of FOMC Minutes. The Dollar Index and the benchmark 10- year US Treasury yield continues to soar, putting additional weight on the precious metal, gold.
From the technical perspective, the intraday outlook remains downside as the pivotal support from yesterday fails to defend, now attracting more follow-through sellers. In the meantime, a bearish MACD signal also hints at gold’s further downside toward the next support of $1736.20. However, an oversold RSI might give the selling pressures a break; some dip buyers might start buying at this stage before FOMC Minutes.
Resistance: 1768.69, 1789.66, 1806.60
Support: 1734.80
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