Looking at the chart of Gold in H1 timeframe, we see that the price is now consolidating; the current down move lost momentum and found good support, confirmed by multiple price rejections in the area between 1278.5$ and 1282.7$.
AUD/USD saw the expected technical bounce towards 0.9300 after the 100 pip drop after the CPI data. Since this morning – since the beginning of the European session to be precise – we are seeing another wave of selling in the pair.
EUR/USD traded higher after a better PMI index from Germany yesterday but was not able to hold onto the gains.(“ This morning the price action is dominated by the PMI data from France, Germany and the euro zone. We stay away from a technical forecast and wait for the numbers to be published. Key support 1.3785 and key resistance on the upside is 1.3835. This level was tested this morning and prices were rejected ahead of the French PMI. In the range 1.3785:1.3835 we take a neutral stance here.“)
AUD/USD traded higher in-line with our positive scenario. Below consensus inflation data from Australia destroyed the bullish picture. (“A look at the 4 H chart shows that the pair has broken the upper boundary of the recent trend channel. This is a bullish sign and we expect higher levels ahead. If you are not already long in AUD/USD you can use a potential pullback towards 0.9330:50 as a long entry with a stop below 0.9280. From a technical perspective we expect a re-test of the 0.9430:50 area as long as the pair does not close below 0.93 on an hourly basis. A rise above 0.9380 would confirm our bullish scenario.“)
USD/JPY traded sideways on Tuesday near the top of the recent range. There were no major swings in the pair although key resistance at 102.70 was tested again. (“USD/JPY failed now twice at the 50% retracement at 102.72. We take this as a confirmation for our negative scenario for USD/JPY. It is likely that we will see a larger drop down towards 102 yen in the next couple of hours as long as 102.80 is not surpassed.”)