Gold holds on to its recent gains despite emerging negative signals from the relative strength indicators after reaching overbought levels. These signals have not yet been reflected in price action, highlighting the strength of the current bullish momentum.

However, the main short-term trend remains bearish, while continued trading below the EMA50 maintains downside pressure and limits the chances of a stronger recovery in the near term.

The EURUSD pair traded in a volatile manner during recent sessions, testing the key resistance level at 1.1575, which represents the neckline of a developing bullish double-bottom pattern. The pair is also attempting to overcome the negative pressure from the EMA50, increasing the importance of this area in determining the next direction.

Meanwhile, relative strength indicators have started to show a bearish crossover after reaching overbought levels, which may limit recent gains and increase the chances of a pullback.

The GBPAUD pair recently achieved a clear breakout above the resistance level at 1.9000, recording gains by reaching 1.9122. It then shifted into sideways trading due to conflicting signals from the main indicators, particularly as the stochastic indicator attempts to exit overbought territory.

We now consider the broken resistance level as new support and emphasize the importance of the price gathering positive momentum. This would facilitate pressure on the 55-day moving average at 1.9145, and a break above it would open the way for further gains toward 1.9190 and 1.9240 respectively.

Expected trading range: between 1.9020 and 1.9145

Today’s forecast: Bullish

The EURJPY pair has maintained its positive stability, benefiting from attempts by the main indicators to generate positive momentum, moving away from the support level at 184.20. The price is currently approaching the 61.8% Fibonacci retracement level at 185.50.

The price needs to break above 185.80 and hold above it in order to facilitate a continuation of the upward move. A break of the recent peak at 186.15 would open the way for further gains toward new positive targets at 186.65 and 187.35 respectively.

Expected trading range: between 184.70 and 186.65

Today’s forecast: Bullish as long as support holds.