Gold, EUR/USD, USD/JPY Price Action Analysis And Technical Outlook

• PPI YoY (Apr)Actual: 0.9%Expected: 0.9%Previous: 0.9%

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• GOLD PRICE TECHNICAL ANALYSIS
• EUR/USD FORECAST - TECHNICAL ANALYSIS
• USD/JPY FORECAST - TECHNICAL ANALYSIS

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Gold (XAU/USD ) dropped on Monday following an unsuccessful endeavor to take out trendline resistance at $2,375 on Friday, with prices slipping back below the $2,350 mark at the start of the new week. Should losses intensify in the days ahead, a potential support zone emerges near May's low and the 50-day simple moving average around $2,280. Below this area, attention will shift to $2,260.

On the flip side, if bulls regain decisive control of the market and propel prices higher, the first technical hurdle to keep an eye on appears at $2,350, followed by the dynamic trendline discussed earlier, now crossing $2,365. Further upward movement past this point could strengthen buying momentum, laying the groundwork for a rally towards $2,420 and possibly even $2,430.

Gold Price Chart Created Using TradingView

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EUR/USD advanced on Monday, clearing both its 50-day and 200-day simple moving averages near 1.0785. If this bullish breakout is sustained, overhead resistance stretches from 1.0805 to 1.0810. While overcoming this barrier may pose a challenge for bulls, a move beyond it could lead to relatively clear sailing towards 1.0865, the 50% Fibonacci retracement of the 2023 selloff.

Conversely, if sellers mount a comeback and drive the pair below the previously mentioned simple moving average indicators, sentiment towards the euro could start souring, creating the right conditions for a pullback towards 1.0725 and 1.0695 thereafter. Additional losses below this crucial floor could trigger a descent towards 1.0650, May's trough.

EUR/USD Chart Created Using TradingView

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USD/JPY continued its upward trajectory on Monday, consolidating above the 156.00 handle. Should this momentum pick up later in the week, resistance appears at 158.00, followed by 160.00. It's important to exercise caution with any ascent towards these levels, considering the possibility of FX intervention by Japanese authorities to bolster the yen. Such a move could quickly send the pair into a tailspin.

Alternatively, if selling pressure resurfaces and prompts the pair to reverse course, initial support is positioned at 154.65. While prices are expected to stabilize around this zone during a pullback, a breakdown could precipitate a swift decline toward 153.15. If weakness persists, attention could turn to trendline support and the 50-day simple moving average near 152.50.

USD/JPY Chart Created Using TradingView