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Sat, Jun 22, 2024

Forex and Gold Analysis – Correction happening from key price levels
5 mins well spent


Gold XAUUSD is making a correction from the top resistance zone.

Gold XAUUSD is making a correction from the top resistance zone

Gold prices show a resilient move to 1915$ today as US Dollar continues to decline. This week NFP report expectations are a 650k outcome; once Positive Data outcome may push the Dollar up and reverses Dollar gets down.

US NFP data 1

And Biden plan of $6 trillion spendings of the Budget will impact the Gold prices, Pandemic solving money equal to gold prices higher.

China one side buying Gold of 150 tons from the UK, this simple formula, UK and US selling Golds to print US Dollar, UK Pound and China simply buying gold without buying US Dollar or UK Pound from them.

China has planned to import more Gold

Due to this scenario, US Dollar impacted at least a 4-year term of Biden till 90% of the economy to come back to a normal level.


USDCHF breaking low levels continuously, recently broken the low level of the minor uptrend line.

usdchf breaking low levels continuously recently broken the low level of minor uptrend line

US Dollar declines as Consecutive news of Joe Biden Infrastructure plan of $2.2 trillion and Budget news of $6 trillion for the 2022 year.

US Dollar faces selling pressure

More US Dollar spending will lead to Weaker Dollar in Face value, as the US selling Gold to print US Dollar more and China using a better opportunity to buy Gold as Safe Currency than US Dollar.

GBPUSD, EURUSD, AUDUSD, NZDUSD all major currencies 20-30% higher than the last year 2020 Dip.

And US Dollar will see another four years for the declining market as the Pandemic hits more on Businesses and Employment rate.

US recovery is not a single day recovery as we see in the news; it is a step by step compounding manner to rebuild the economic infrastructure to the Previous level is a big job for the US.

US Stimulus

Whatever Stimulus plan is decided to put on Economy, Businesses will see at least 2–3-year revenue to generate to compensate all losses from pandemic and Job’s recovery is on the way, Normal it will take 2-time services of Biden years that is 2021-2028.


EURUSD moving in an uptrend continuously breaking higher highs.

eurusd moving in an uptrend continuously breaking higher highs

EURCHF is moving in an Uptrend for the long term view, but in short term, it’s moving in a downtrend.

EURCHF is moving in a Uptrend for long term view but in short term its moving in downtrend

Unemployment rate falls in Germany pushed Euro Currency to higher.

EU flag waving in front of European Parliament building. Brussels Belgium 1

And Lockdown easing pushed for a good start for Businesses to start up. More jobs provided for people, and the Employment agency reported 15000 jobs created; and Overall, jobs decreased to 2.5 million.

The unemployment rate fell to a healthier level, and consumer spending is expected to increase, and Economy recovery will soon be happening in Eurozone.

Eurozone retail sales

But uncertainty forming in the UK because of the New Indian Variant COvid-19 spread across the UK.

ECB meeting June’10

ECB may decide for Status Quo as CPI inflation numbers may come in Positive numbers.

And Vaccinations are smoother progress in Eurozone, and New Variant of Indian Covid-19 attacked in some UK places; it will hurt Economy again to dip fears surrounding Europe and UK.

ECB is currently buying 100 billion Euro worth of Debt bonds.

The ECB meeting will be held on June 10 and expected no rate hikes or no rate dips until 2024; no tapering is seen in ECB, but more easing of stimulus we see in ECB if new Variant of COvid-19 spread to Eurozone.

EURUSD will break the resistance of 1.22400 this month is possible due to FED dovish stance as Joe Biden increases the Stimulus and budget in Trillion dollars.


GBPUSD ranging at the important resistance, wait for breakout or reversal.

gbpusd ranging at the important resistance wait for breakout or reversal.

EURGBP formed a symmetrical triangle, wait for a breakout.

eurgbp formed a symmetrical triangle wait for breakout

Bank of England Deputy Governor Dave Ramsden said that the UK Housing market booms to 10.9% compared to Last year it is a huge Boom in the last 7 years.

bank of england in UK

UK Inflation booming from the pandemic is backed up from Housing market prices and Consumer spending increasing.

And June 21 will be the end to lock down as many of habitants Vaccinated and Economic recover in Full Fledged move.

A New Covid-19 Variant may hamper the good news of recovery soon we may expect; we may see negative rates also possible if Spread made higher once again.


USDCAD hits the bottom of the descending triangle, wait for breakout or reverse.

usdcad hits the bottom of the descending triangle wait for breakout or reverse

OPEC+ meeting held this week due to this Oil market and US oil touched above the March month resistance 67.95$.

crude oil price

As demand from the US, Europe and the UK creating more from Oil Producing countries.

Canadian Dollar gets ultimate benefits after 2 million barrel per day cut for Increasing demand from Global level. CADJPY still moves in Profit Booking Consolidation level, and whenever gets booming to 92-93 level.

USDCAD this second quarter of 2021 will break the level of 1.20 and will target to 1.19-1.18 level in September month.


USDJPY moving in a rising wedge pattern in the h4 chart.

USDJPY moving in an Rising wedge pattern in h4 chart

USDJPY said to range-bound market between 108-110 level since it is tough to break above 110 level as Strong resistance in 10 years.

Japanese yen sends higher more against US Dollar

And Japanese Yen plays down as Lockdown extended until June 3rd week.

Manufacturing activity and consumer spending data came in positive numbers, but Vaccine rollouts are up to mark.

Japan Lockdown Osaka Japan April 19 2020 Osaka people in a store stand at a distance of 2 meters to observe social distancing during a pandemic 1

The only error in Japan is Vaccination fast progress lagging, and once this problem is rectified, the Japanese Yen started to boomer high.

Lockdown leads to Lockdown businesses, and vaccination leads to open up businesses in Japan.


AUDUSD ranging between SR levels and it’s moving in a triangle pattern.

audusd ranging between SR levels and its moving in a triangle pattern

Reserve Bank of Australia  Monetary policy Meeting happened today and left interest rates unchanged in the 7th Policy meeting since the pandemic.

Reserve bank of Australia remains an accommodative stance

And Victoria state announced Lockdown for 3 weeks again as the spread of New Covid-19 Variant causes major Burden for economy retrieving.

And RBA Clearly stated that there is no change in the rate of interest until 2024. But the inflation target of 2-3% will hit gradually to 2024, and there is a way to hike rates, and Tightening purchases is possible.

Reserve bank of Australia remains an accommodative stance

Third round quantitative easing will be A$75 billion to A$100 billion is possible expectations.

AUDUSD moved in the ranging market because the outcome of news is expected.


NZDCHF falling from the lower high level of a descending channel.

nzdchf falling from the lower high level of a descending channel

New Zealand Dollar performing well as economic data in the home country performing well as Business confidence rose to 1.80% in May from -2% in the Previous month and Building permits jumped to 4.8% in April.

New Zealand Dollar rose higher after US Dollar steady fell

And Chinese Caixin manufacturing PMI jumped to 52.0% in May month compared to 51.9% expected.

This will support Kiwi currency more, and Any disruptions from New Zealand in China matters will affect Business matters, as China previous said.

New Zealand is more traded materials than Australia in the last one-year report due to China and Australia’s relationships not in a smooth manner.


CHFJPY is moving in an uptrend forming higher high and higher low areas.

CHFJPY is moving in an uptrend forming higher high and higher low areas

Swiss National Bank Vice Chairman Fritz Zurbrugg said Forex intervention is much important; our Swiss Franc currency is overvalued. Continuous FX intervention will keep the Swiss Franc higher Value.

Swiss Franc remains ultrasafe haven

And the Monetary policy seems appropriate and Negative rates are welcomed; due to this, the Swiss Franc remains the safest currency on Globe.

US Dollar weakness makes the Swiss franc more expensive, and CHFJPY declines 0.80% in the last 1 week as a Profit booking step.

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