The Bearish Price Action of the USD Is Helping Support Gold

The USDJPY appears to be resuming its downtrend.


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

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