

EURUSD
The Euro rose during today’s trading at the beginning of the week, after falling last Friday against the Dollar, and as markets awaited major events this week.
European Central Bank President Mario Draghi will speak today, and may address current Monetary and Inflation Policy conditions and shed some light on whether the bank will pull out its incentive program early.
Negative pressure on the Euro may continue as the Federal Reserve has suggested hiking Interest Rate 3 to 4 times this year. The return of selling pressures on the pair’s movement would reinforce the previous bearish trend. A break below the support levels at 1.2300 will consolidate the pair and likely cause a test at 1.2280 levels. A price reversal however, above 1.2320 resistance level will temporarily ease selling pressure.
AUDUSD
The Australian Dollar advanced Monday, the beginning of the week after falling last week against the US Dollar, re-gaining part of last week’s losses.
Technical reading continues to show that prices are still moving within the framework of a positive correction toward a general bearish trend. Resistance levels at 0.7870 are still considered to be the most important short-term levels. These levels are likely to re-introduce a bearish trend to the market. At the same time, any short-term trend reversal will negatively affect price action.
USDJPY
The US Dollar weakened against a basket of major currencies today after recording a week high last week, due to the decline in the yield on US Government Bonds. The japanese Yen strengthened against the Dollar as a result.
Japan’s Central Bank Governor Haruhiko Kuroda said on Monday he had no plan for another comprehensive assessment of the Central Bank’s Monetary Policy, and that the policy will continue on its course to reach the inflation target of 2%.
Technical reading indicates that despite recent declines in the USDJPY pair, prices still have to break and hold below support levels at 106.60 and 106.40 to confirm a continued decline. A break of the resistance level close to 106.85 would affect the bearish trend and introduce a sideways trend in its stead.
XAUUSD/GOLD
Gold advanced on Monday to a four-session high as the Ddollar weakened against major currencies, aiding the recovery of commodity prices across board.
The US Dollar saw a decline against the major currencies after the yield on long-term US Bonds following after Federal Reserve Chairman Jerome Powell said last week that the Federal Reserve should accelerate Interest Rate hikes so as not to hurt the US Economy.
The markets also await in high anticipation, the first testimony of new Federal Reserve Chairman Jerome Powell before the US Congress, where he is expected to provide details on the direction for Monetary Policy this year.
Despite the recent price hikes, the price of the precious metal still has to break above stability levels at 1340, to confirm a continued uptrend. A drop below the near support at 1334 would affect the uptrend and introduce a sideways trend.