Dollar Majors, Commodities, & Stocks Set to Move as Key Events Unfold This Week
The US dollar majors and other key assets are being watched closely this week as several important events unfold. The Bank of Canada (BoC) and Reserve Bank of New Zealand (RBNZ) will announce their interest rate decisions, which could have a significant impact on currency markets. Additionally, the ADP employment report and Non-Farm Payrolls will provide insight into the US labor market.
The EUR/USD is currently testing confluent uptrend support after rebounding off technical resistance. If price breaks below 1.1563, it would suggest that the near-term high is in place, and a larger trend reversal is underway. On the other hand, a close above 1.1630 would fuel the next leg of the advance.
Aussie (AUD/USD) marked an outside daily-reversal off confluent resistance on Friday at 7208/14, which is a region defined by the 61.8% retracement of the 2021 decline and the 100% extension of the 2025 advance. The immediate focus into the start of the week is on a breakout of Friday's range with initial resistance eyed at 7184.
Gold (XAU/USD) broke below the August uptrend after Fed Chair Warsh's hawkish remarks, extending more than 6.3% off the monthly high. Key support now rests with the objective yearly open and the 50% retracement at 4319/20. A topside breach above 4507/33 is needed to fuel the next leg of the recovery.