All eyes are turning to the Federal Reserve and the US dollar. How to trade XAU/USD, EUR/USD, and GBP/USD?
Market updates on June 25
Key events ahead
US CB consumer confidence – 17:00 MT.
According to the forecasts, the indicator will decline to 132 points. Higher figures will be good for the USD.
Speech by Fed Chair Jerome Powell – 20:00 MT.
· EUR/USD has reached the resistance at 1.1411 on H4 and made a small correction towards the 1.1388 level. If the USD is supported today, the 1.1388 level will be broken and the next support levels will lie at 1.1366 and 1.1344. From the upside, the break of 1.1411 will resume the uptrend for the pair and push it to the next key levels at 1.1440 and 1.1465. RSI and Stochastic oscillators just left the overbought zone.
· USD/JPY tested the support at 106.86 on H4. If the Fed Chair Jerome Powell confirms the dovish tone of the Fed today, the next support for the pair will be placed at 106.67. If it is broken, bears will pull the pair lower to the support at 106.43. From the upside, pay attention to the 107.15, 107.42 and 107.79 levels. Here, RSI has been testing the border of the oversold zone, while stochastic indicator is moving within this zone.
· Gold has been strengthening amid the tensions between the US and Iran and the weak USD. At the moment it is testing the resistance at $1,433. The next key level will lie at $1,473. From the downside, the levels are: $1,423, $1,404 and $1,387. RSI is moving within the overbought zone.
The main bank of Russian will likely turn hawkish today. Time to sell USD/RUB?
The RBA Rate Statement comes on June 1, at 07:30 GMT+3.
The Bank of England will release its statement and announce its monetary policy decision at 14:00 MT.
Last week the USD soared versus other major currencies, while gold headed for the biggest weekly loss in 15 months. Let’s see what new moves await us this week!
The US dollar has surged to levels unseen since April after the Fed's decision back on Wednesday. Gold has reversed up from the local dips. Still, this week was the worst for gold in more than a year.