Gold stays below $1,970 hurdle as the Fed week begins …

EURUSD

EUR/USD is staying on the defensive near 1.0750 while consolidating Friday’s pullback early Monday. The main currency pair is on a cautious footing, courtesy of a broadly firmer US Dollar and US Treasury bond yields. Markets stay calm ahead of the Fed, ECB storm.

 If the pair continues the uptrend to the range of 1.0804, it is expected to continue the uptrend to the range of 1.0820.

On the other hand, If the pair continues the downtrend to the range of 1.0732, it is expected to continue the downtrend to the range of 1.0716.

USDJPY

The USD/JPY pair gains some positive traction for the second successive day and climbs back above mid-139.00s during the Asian session on Monday. The Japanese Yen (JPY) weakens a bit on the first day of a new week in reaction to the dismal domestic data.

if the pair continues the uptrend to the range of 140.25, it is expected to continue the uptrend to the range of 140.77.

On the other hand, If the pair continues the downtrend to 138.85, it is expected to continue the downtrend to 138.33.      

GBPUSD

GBP/USD is off the highs, defending minor bids below 1.2600 in the early European hours. The pair is struggling for the upside traction, as the US Dollar holds its recovery gains amid a cautious market mood. All eyes remain on the US CPI data and the Fed decision.

If the pair continues the uptrend to the range of 1.2602, it is expected to continue the uptrend to the range of 1.2657.

On the other hand, if the pair continues the downtrend to 1.2513, it is expected to continue the downtrend to 1.2492.

AUDUSD

The AUD/USD pair enters a bullish consolidation phase on the first day of a new week and oscillates in a narrow trading band, just below mid-0.6700s or a one-month high touched on Friday. Bulls still await a sustained strength beyond the 100-day Simple Moving Average (SMA) before placing fresh bets and positioning for an extension of the recent upward trajectory witnessed since the beginning of the current month.

If the pair continues the uptrend to the range of 0.6729, it is expected to continue the uptrend to the range of 0.6766.        

On the other hand, if the pair continues the downtrend to 0.6671, it is expected to continue the downtrend to 0.6650.

XAUUSD

Gold pares intraday losses, after posting a two-week uptrend, as the key week comprising the top-tier central bank announcements and US inflation data loom. That said, the market’s cautious optimism fails to keep pressuring the US Dollar amid reassessment of the previous dovish bias about the Fed.

If the pair continues the uptrend to the range 1980.18, it is expected to continue the uptrend to the range of 1987.21.

On the other hand, if gold continues the downtrend to the range of 1954.21, it is expected to continue the downtrend to the range 1947.18.