The U.S. dollar continues to trade within a range with a slight downside bias, the index is struggling with the short term support of a possible descending triangle pattern around 79.60. A push lower below could send it towards the 50-days SMA and horizontal support around 79.30. In general, the current sideways movement is expected to continue within the upcoming period.
The EUR/USD pair has been consolidating within a possible bearish flag pattern; capped from the upside by 1.3155-1.3160 resistance, unless we see a breach above this resistance the downside bias remains in favor for a possible retest of the recent lows around 1.3030. On the other hand steady trading above 1.3160 could clear the way to 1.3250 potential resistance area.
GBP/USD could have formed a short term bottom at the 50-days SMA around 1.5815; as it currently attempting to breach 1.5925 pivot, thus if we see a clear breach of 1.5925 the door could be open to 1.6000 and 1.6060 again. To the downside, taking down the 50-days average may lead to 1.5770 followed by 1.5650.
We have seen the USD/JPY testing the descending support of the declining channel yesterday; in addition to the 50-days SMA and 80.50 horizontal support, where we anticipated a rebound, indeed price is trying to gather pace again; where we expect a bullish wave within the upcoming sessions eying 81.80 and the descending resistance of the channel once more. A breach below 80.50 could extend bearishness to 80.00; however we believe the level shall hold in the near term.
Gold has been challenging the descending resistance of the falling wedge bullish reversal pattern since yesterday, the current rally could extend further if we witness 1665.00 beaten; as steady trading above the level could confirm the breach of the pattern and extend upside targets initially towards the 50-days SMA and the swing high around 1700.00 areas. To the downside major support levels to watch start at 1645.00 followed by 1630.00.