No news for copper price by it continues fluctuation below the extra barrier at $4.8900, which obstacles the chances for resuming the bullish attack, to expect the domination of the sideways track in the near period, and there is a chance for forming some correctional waves, to reach $4.7500 reaching 50%Fibonacci correctional level at $4.6600.
While the price success to confirm breaching the mentioned barrier will reinforce the chances for renewing the bullish attempts, to expect reaching $5.0300 reaching the next barrier at $5.1000.
The expected trading range for today is between $4.7500 and $4.8900
The NZDCHF kept its stability in the last trading within the bullish channel’s levels, noticing forming weak trading due to the several barriers near the 0.8300 level that decreases the chances for recording any extra gains until now.
The repeated stability below the barrier will increase the efficiency of the bearish correctional track again, to expect reaching 0.8240, then attempt to press on the bullish channel’s support at 0.8210, while motivating the bullish track requires repeated closes above the barrier to reach the positive stations at 0.8375 and 0.8415.
The expected trading range for today is between 0.8210 and 0.8300
The GBP/USD price analysis shows the pound giving up its gains from the previous session.
The greenback recovered as market participants watched trade talks between China and the US.
Traders are awaiting the US CPI report, which will provide clues about the outlook for Fed rate cuts.
The GBP/USD price analysis shows the pound giving up its gains from the previous session amid dollar strength. The greenback recovered as market participants watched trade talks between China and the US in London. Meanwhile, traders are also preparing for the US consumer inflation report and the UK’s spending plans. Downbeat UK claimant count data also ignited a sell-off.
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After a call between the US and Chinese presidents, the two countries agreed to meet and discuss trade matters in London. The talks started after Trump accused China of not being true to their recent trade deal.
Recently, the two countries agreed to slash tariffs for the next 90 days. Moreover, this deal paused a raging trade war that had dimmed the outlook for the global economy. Therefore, any conflicts on trade revive tensions and fears for both economies. Meanwhile, talks boost investor confidence. However, it remains unclear whether the two countries will reach an agreement.
Meanwhile, traders are awaiting the US CPI report, which will provide clues about the outlook for Fed rate cuts. At the same time, a UK spending plan might shape the outlook for the economy and monetary policy.
GBP/USD key events today
Traders are not looking forward to any significant releases from the UK or the US. As a result, all focus will remain on trade talks.
GBP/USD technical price analysis: Bears show strength below the 30-SMA
GBP/USD 4-hour chart
On the technical side, the GBP/USD price has broken below the 30-SMA, indicating a bearish shift in sentiment. At the same time, the price has made a solid red candle below the SMA, confirming strength in the new move. Currently, the price trades well below the SMA, with the RSI under 50, suggesting a bearish bias.
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The shift comes after the previous rally paused at the 1.3603 resistance level and made a bearish divergence. This weakness allowed bears to gain momentum and take charge by pushing the price below the SMA.
Bears can now aim for the next support at the 1.3400 level. A break below this level would strengthen the bearish bias by making a lower low. On the other hand, if bears fail to achieve this, the price will bounce higher.
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No news for copper price by it continues fluctuation below the extra barrier at $4.8900, which obstacles the chances for resuming the bullish attack, to expect the domination of the sideways track in the near period, and there is a chance for forming some correctional waves, to reach $4.7500 reaching 50%Fibonacci correctional level at $4.6600.
While the price success to confirm breaching the mentioned barrier will reinforce the chances for renewing the bullish attempts, to expect reaching $5.0300 reaching the next barrier at $5.1000.
The expected trading range for today is between $4.7500 and $4.8900
The Euro did rally a bit during the early hours on Monday, but we are starting to see a little bit of heaviness in this market at the moment.
That being said, we still have a long way to go before we can talk about being bearish.
However, we are in a situation where traders are definitely worried about the 1.15 level and whether or not we can break above it.
We’ve recently seen volume spike, drop, and then spike again. When looking at certain oscillators, you can also see divergence. I believe that we may be a little tired at this point and could see a bit of a breakdown. At the same time, I could make the argument that the market is simply going to kill time after this massive run higher. After all, it’s not typical for this pair to move that quickly.
Normal Behavior of Grinding Here
This is a market that generally grinds its way in one direction or the other, often putting traders to sleep. The fact that we had such an impulsive move is a little out of the ordinary. Looking at the longer-term chart, you can see there is a major cluster right here, so it makes sense that we are repeating that pattern.
We had a range from the end of 2022 between 1.12 and 1.05. We broke below it before breaking above it, so from this perspective, the market is showing signs of confusion. If we break down below the 1.12 level, then I think we will return to that consolidation region. However, if we break above 1.15, then we could go looking to the 1.18 level. All things being equal, I think in the short term we’ve got a lot of sideways action ahead of us.
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
Platinum price succeeded to resume the bullish attack yesterday, reaching the last target at $1223.00, facing 2.610% Fibonacci extending level, forming a significant resistance against detecting the main trend in the upcoming trading.
The stability below this resistance and stochastic exit from the overbought level, we expect forming some bearish correctional wave that might target $1180. 00 level reaching extra support at $1162.00, while breaching the resistance and holding above it will reinforce the chances for achieving extra gains that might extend to $1240.00 reaching the main bullish channel’s resistance at $1255.00.
The expected trading range for today is between $1185.00 and $1225.00
The Japanese yen the British pound has pulled bank of it against the Japanese yen during trading on Monday, but it is still fairly close to the overall resistance barrier.
It does look like buyers are trying to lift it up.
I think this is an interesting pair to watch because right around the 196.50 yen level there is a significant amount of resistance.
It being broken to the upside could open up the possibility of a move to the 199 yen level short-term pullbacks. I think we continue to see a lot of support near the 195 yen level which is of course a large round psychologically significant figure. If we break down below there then the market is likely to go looking to the 50 day EMA closer to the 193 yen level.
Looking to Buy the Dip?
In general, I think you’ve got a situation where traders are looking to buy the dip, mainly due to interest rate differential. The fact that we’ve recently shown that the Japanese bond market is a bit of a train wreck just waiting to happen. There’s been multiple days there’s been nobody willing to buy Japanese government debt. That is a disaster just waiting to happen. the Bank of Japan almost certainly is going to have to step in and do a bit of quantitative easing before this is all said and done.
I think what you’ve got in front of you is a chart that expresses this. If we can break out to the upside, I believe that not only is the 199 yen level possible, but we may even go all the way to the 200 yen level. It’s not until we break down below the 200 day EMA, presently near the 192.50 Yen level, that I’d be concerned about the bullish attitude of this pair.
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
The US Dollar picks up strong bids early Tuesday amid USD/JPY rebound, trade optimism.
Gold buyers stay hopeful until the 21-day SMA and RSI midline hold fort.
Gold price is back to testing the $3,300 threshold early Tuesday amid resurgent US Dollar (USD) demand. However, traders continue to maintain caution, watching the US-China trade talks in London.
Gold price awaits more US-China London trade talks
Bloomberg reported that trade talks between the United States (US) and China will continue into a second day after the first day of talks were fruitful, per US Commerce Secretary Howard Lutnick.
US President Donald Trump said late Monday that “China is not easy but we are doing well with China,” giving no specifics on the key contention topics of shipments of technology and rare earth elements.
Alongside the US-China trade optimism, the latest leg down in Gold price is fuelled by a solid rebound in the US Dollar (USD).
The Greenback is mainly driven by the upswing in the USD/JPY pair after the Japanese Yen (JPY) tumbled on Bank of Japan (BoJ)Governor Kazuo Ueda’s cautious remarks on the interest rates outlook.
Ueda said: “We will raise interest rates if we have enough confidence that underlying inflation nears 2% or moves around 2%.”
The further upside in the Greenback will likely remain limited as traders refrain from placing fresh bets before any decisive outcome from day 2 of US-China trade talks in London.
Markets will also look forward to Wednesday’s US Consumer Price Index (CPI) data for fresh direction on the USD and Gold price.
On Monday, the latest Survey of Consumer Expectations conducted by the Federal Reserve (Fed) Bank of New York showed that the year-ahead inflation expectation decreased to 3.2% in May from 3.6% in April.
Gold price technical analysis: Daily chart
There are no changes to the short-term technical outlook for Gold price so long as the critical $3,297 level is defended.
That level is the confluence of the 21-day Simple Moving Average (SMA) and the 38.2% Fibonacci Retracement (Fibo) level of the April record rally.
Further, the 14-day Relative Strength Index (RSI) has managed to hold its ground above the midline, currently near 51, supporting the bullish bias.
Gold sellers need a daily candlestick closing below the abovementioned strong support at $3,297 to challenge the 50-day SMA cap at $3,262.
The last line of defense for buyers is aligned at $3,232, the 50% Fibo level of the same ascent.
On the flip side, Gold buyers will likely find strong offers at the $3,350 psychological level if the rebound gathers strength.
The next resistance is spotted at the 23.6% Fibo resistance at $3,377, above which the May high of $3,439 could be threatened.
(This report was corrected on June 10 at 04:03 GMT to say that “Gold price is back to testing the $3,300 threshold early Tuesday,” not Thursday.)
Gold FAQs
Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government.
Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves.
Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal.
The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.
Since there was a failed upside breakout of consolidation on Friday, and it was followed by a drop below the low of the consolidation price range on the next day, the small consolidation pattern may have expanded into a potential broadening formation. Notice that the 50-Day MA was last reclaimed on June 2 with a sharp advance, and it followed a failed breakout of the 50-Day line several days earlier.
Therefore, if weakness persists the 50-Day line marks a key potential support level. Currently it is at $3.51, and it has converged with the 20-Day MA. So, they each represent the same price. Further, an AVWAP level starting from the April swing low (A) is at $3.50 and a weekly low is also at $3.50.
Strong Support at $3.50
When multiple indicators point to a similar price level, that area of price can take on potentially greater significance. Either by drawing price towards it like a magnet or repelling price and exhibiting signs of strong support. Moreover, if the price zone fails to hold as support, a breakdown could lead to downside momentum spiking, as the chance of an eventual resolution to the upside diminishes. The weekly low in natural gas is most significant as it is part of the weekly bullish price structure.
Weekly Patterns
Last week was an inside week and it followed a potentially bearish shooting star candlestick pattern the week before. Since last week’s high did not exceed the prior week’s high, natural gas remains prone to potential downside risk warned by the shooting star. But it also has potentially strong support not far below from current prices. Further consolidation before natural gas makes another attempt to rise above the May swing high (B) at $3.84, might make that breakout more successful, if it does occur. But only if it stays above last week’s low of $3.50.
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Last week, silver broke out to a new trend high and confirmed the breakout on a weekly basis, as the week ended above the $34.87 breakout level. There has only been one week up since an inside week breakout triggered last week. That led to the spike in bullish momentum and a decisive rally to new trend highs. The $37.05 potential target is the initial completion of a rising ABCD pattern that started from the April swing low (A).
Rapidly Approaching $37.05
Might silver continue to rise above $37.05? Given the bullish momentum of the past few days, it looks possible. However, the next upside target recognized by the confluence of several price levels is up at $38.46 to $38.61. That area may act like a magnet for price, but it may be too far to go before at least a pause or minor correction of some degree first. Notice that there is also a trend channel line that represents potential resistance above $37.05.
Bullish Measured Moves
As of today’s high, the price of silver was up by $8.58, or 30.1%, from the April swing low at $28.32. On a percentage basis, that measured move shows a relationship with the two prior strongest rallies since February 2024. However, each showed slightly stronger performance than the current advance, so far. From August 2024 there was a 31.7% rise and from February 2024 the price of silver rose by 35.9% before seeing a more significant pullback.
Buyers In Charge Unless $35.91 Support Fails
Monday’s higher daily low at $35.91 I near-term support for silver. The near-term uptrend is retained above that price level, while a drop below it could lead to a deeper retracement. Although there are potential upside price targets discussed above, they are only a guide as to what might happen. New price action needs to be consistently assessed to identify changing support and demand dynamics. The next decision point will be whether resistance is seen around $3.05, or whether there are signs of an upside breakout, and therefore a continuation of the bull trend.
For a look at all of today’s economic events, check out our economic calendar.
