The Bearish Price Action of the USD Is Helping Support Gold

The USDJPY appears to be resuming its downtrend.

FOREX 10

The US Dollar was bearish against all of its major pairs on Monday. On the U.S. economic data front, Empire Manufacturing declined to 3.7 on month in August (15.0 expected), from 17.2 in July. 

On Tuesday, Housing Starts for July are expected to increase to 1,240K on month, from 1,186K in June.  

The Euro was bearish against most of its major pairs with the exception of the NZD, GBP and USD. In Europe, no major economic data was released.

The Australian dollar was bullish against all of its major pairs.

Gold jumped $39.94 (+2.05%) to $1985.06.

VIX index declined 0.7pt (-3.17%) to 21.35.


The USD/JPY dropped 59 pips to 106.00 in Monday's trading session. The currency pair appears to have just broken to the downside of a short-term ascending wedge pattern that began to form on July 31st. The overall trend of the pair remains bearish and will likely continue to fall to 105.30 as long as price action remains below 107.05. 



Source: GAIN Capital, TradingView


More from USD

From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.